This study shows an economically significant relation between a firm’s environmental performance and its cost of debt. Firms that have poor environmental performance will face future environmental liabilities related to compliance and clean-up costs due to increasingly strict environmental laws and regulations. Under current U.S. law, environmental liabilities can impair the value of fixed assets, as environmental claims often take precedence over the claims of creditors. Thus, future environmental liabilities are of particular concern to creditors. Previous accounting research has shown that a firm’s market value of equity is significantly affected by its environmental performance. However, the same has yet to be shown for a firm’s cost of debt capital. This study focuses on a sample of U.S. pulp and paper firms. The results imply that the market applies an ‘environmental risk’ premium of thirty-eight basis points to the cost of debt capital for the average public firm in the U.S. pulp and paper industry, based on its environmental performance. Environmental performance is measured using the annual toxic release inventory of the United States Environmental Protection Agency. It is a measure of the amount of toxic chemicals released to land, air and water by a firm’s operating facilities. This paper adds to the literature, providing evidence that environmental performance is a value relevant measure with regards to creditors. Thus, recent calls in the United States for greater cooperation between the Securities and Exchange Commission and the Environmental Protection Agency should be addressed. These calls are for the reporting, on a firm-wide basis, of quantifiable data that is already required by the Environmental Protection Agency but is not typically available in detail in firms’ reports to investors.

This study shows an economically significant relation between a firm’s environmental performance and its cost of debt. Firms that have poor environmental performance will face future environmental liabilities related to compliance and clean-up costs due to increasingly strict environmental laws and regulations. Under current U.S. law, environmental liabilities can impair the value of fixed assets, as environmental claims often take precedence over the claims of creditors. Thus, future environmental liabilities are of particular concern to creditors. Previous accounting research has shown that a firm’s market value of equity is significantly affected by its environmental performance. However, the same has yet to be shown for a firm’s cost of debt capital. This study focuses on a sample of U.S. pulp and paper firms. The results imply that the market applies an ‘environmental risk’ premium of thirty-eight basis points to the cost of debt capital for the average public firm in the U.S. pulp and paper industry, based on its environmental performance. Environmental performance is measured using the annual toxic release inventory of the United States Environmental Protection Agency. It is a measure of the amount of toxic chemicals released to land, air and water by a firm’s operating facilities. This paper adds to the literature, providing evidence that environmental performance is a value relevant measure with regards to creditors. Thus, recent calls in the United States for greater cooperation between the Securities and Exchange Commission and the Environmental Protection Agency should be addressed. These calls are for the reporting, on a firm-wide basis, of quantifiable data that is already required by the Environmental Protection Agency but is not typically available in detail in firms’ reports to investors.

Living in counties where manufacturers release environmental toxins, such as those tracked by the Environmental Protection Agency's (EPA) toxic release inventory (TRI), may elevate infants' health risks. Because infant mortality (IM) is a strong indicator of a population's health status, it is an important topic in public health research. The purpose of this research was to examine the potential relationships between IM, community size, and factors related to mothers' SES in counties where more than 25,000 pounds of annual toxic air releases occur. The dependent variable was IM per 1,000 live births in a given community for each of the 3 years included in this analysis (1987, 1995, and 2004). The independent variables included county size and factors related to mother's SES (education, age, ethnicity, and marital status). The theoretical framework consisted of Mosley and Chen's framework for exploring child survival. Archival, publicly available data were pulled from (a) the EPAs TRI data, and (b) linked birth and infant death files from the National Center for Health Statistics. The researcher followed a quantitative, retrospective cross-sectional design and conducted 3 linear regression models to test the research questions. Results indicated that an increase in community size was significantly associated with an increase in IM. Regarding the relationships between IM and the 4 different maternal characteristics (education, age, ethnicity, and marital status) included in the analysis, findings were mixed for the 3 years examined. Despite these unexpected findings, the overall results from this investigation, when considered alongside findings from previous research on IM, indicate that policy changes and interventions are needed to reduce socioeconomic disparities in IM, and to save the lives of more infants.

Hillsborough County, Florida is subject to a variety of natural and technological hazards, which have the potential to threaten both the population and the built environment. This research focuses on several natural hazards (coastal flooding, sink hole, and hurricane) and technological hazards (toxic transportation spills and toxic release from fixed storage facilities) and the population that is potentially exposed to these hazards. Social vulnerability for this population was determined using racial composition, gender, age and household rental/ownership status. Both social vulnerability and exposure to hazardous conditions occur as a continuum across geographical space. The determination of who is exposed; the extent of exposure; and the hazardousness of their environment; requires converting this continuum into discreet values. There is little agreement on how this should be accomplished. The goal of this project is to improve on this situation by developing a multiple hazard map and a social vulnerability map using the best available data with a focus on data integration. The resulting maps were used to determine the extent that the community of Hillsborough County is exposed to hazardous conditions and the social vulnerability of that exposed community. The impact of hazard analysis is dependant on the creation of the hazard map. The hazard map can be affected by application of weighting factors to the individual or groups of hazards. Weighted linear combinations were used to examine how the exposed population changes when different hazard models are used. A technique of cumulative frequency mapping was used to examine how the composition of the exposed population changed as the hazard scores increased. This was useful in visualizing that different vulnerable communities were not exposed to hazards equally. This technique will be useful for future vulnerability/hazard assessments. The results of this research show that the most vulnerable populations in Hillsborough County, Florida are not exposed to the most extreme hazards. Instead the preponderance of the population is moderately vulnerable and is exposed to moderate hazards. It is important to focus on this population to help prepare for and respond to hazardous events and to work toward diminishing their social vulnerability.

<p>This dissertation investigates the non-market value of environmental quality in several contexts with attention paid to equilibrium effects. Chapter One contributes to the ongoing debate concerning the effect of various actions taken by the U.S. Environmental Protection Agency under CERCLA, commonly known as the Superfund Program, on housing prices. The study differs from national sample analyses and site-specific analyses by providing policy-relevant estimates of the hedonic price function in a particular region for the average site. Further, an estimate of the effect on housing prices is given for each of the major events that occur under a typical Superfund remediation. Using house and time-varying census tract fixed effects, I find a 7.3% increase in sales price for houses within 3 km of a site that moves through the complete Superfund program. The analysis gives evidence of positive price appreciation for housing markets and serves as a lower bound for measuring remediation benefits. Chapter Two proposes a new dynamic general equilibrium model of residential location choice with social spillovers and uses it to evaluate the equilibrium consequences of changes in pollution exposure. In particular, I investigate the hypothesis of ``minority move-in,'' which postulates that disproportionate exposure to pollution results from minorities and low-income households trading off such exposure for lower housing costs. Second, I address the question of whether economic incentives caused by differences in willingness to pay across socioeconomic status can explain why polluters disproportionately locate near disadvantaged populations in order to minimize expenses from collective action bargaining over the negative externality. Simulations indicate ``minority move-in'' likely does account for some of the imbalance in exposure to pollution across socioeconomic status. Further, general equilibrium estimates reveal that equilibrium sorting behavior widens the gap in willingness to pay for environmental quality between minority and white households, and between high and low-income households. The disparity in general equilibrium willingness to pay to avoid toxic emissions provides economic incentives for polluters to target disadvantaged populations. Chapter Three investigates how information contained in the U.S. Environmental Protection Agency's Toxic Release Inventory program affects prices in the housing market. First, I use a reduction in the reporting requirement threshold in 2001 as a quasi-experiment to determine whether prices change for existing firms who, as a result of the change, must report. Second, the existence of a reporting threshold creates a discontinuity in treatment than can be exploited. I estimate a regression discontinuity model that assumes that site unobservables are balanced in a neighborhood of the discontinuity. Using a difference-in-differences estimator for the first specification, I find that listing a site in the Toxic Release Inventory lowers prices by 3.1% within a three kilometer radius of the site, and that the effect is stronger at shorter distances. The regression discontinuity model produces qualitatively similar results that are smaller in magnitude but still significant. The results suggest that households to capitalize the information contained in the Toxic Release Inventory. However, since the treatment sites under consideration have virtually no emissions, these results do not contradict previous findings in the literature that toxic air emissions are unrelated to prices. Rather, they suggest that households might be concerned about the dangers of toxic chemicals that might result from an emergency or catastrophic accident.</p> / Dissertation

This dissertation examines two main research questions: Why do firms deviate from their predicted level of toxic emissions, and how do these differences relate to financial performance? The objective is threefold: (1) to understand deviation in corporate environmental performance by looking at both industry and firm level variables, (2) to see how this deviation relates to both profitability and fluctuations in financial performance, and (3) to see if, and how, corporate environmental legitimacy affects the relationship between corporate environmental deviation and corporate financial performance. To achieve this objective the construct “corporate environmental performance deviation” is developed. It is defined as the extent to which a firm’s environmental performance deviates from its predicted performance, and is used to capture within-firm strategic choices in environmental management. Predicted environmental performance is calculated based on certain firm characteristics such as size and industry. Actual environmental performance is calculated using a weighted score of air emissions obtained from the Toxic Release Inventory (TRI) database. The difference between these two values represents a corporation’s environmental performance deviation. Corporate environmental performance deviation focuses on strategic choices related to environmental management, while recognizing that environmental management is the result of both institutional pressures and within-firm strategic decisions. Aligned with this focus, variables 2 related to this strategic choice are used to explain deviation in environmental management, including an environmental integration capability, firm strategy, and industry munificence and dynamism. Associated with the internal and external organizational analysis, institutional theory and the resource-based view (RBV) are used to explore the tension between deviation to increase competitiveness versus isomorphism to attain legitimacy. The sample is composed of 311 U.S. firms who have reported their toxic air releases to the TRI from 1998-2007. The sample is broken down into two subsets, those that exceed (positive deviation) or fail to meet (negative deviation) predicted environmental performance. Results of a longitudinal analysis show that positive environmental deviation is related to a greater capacity to strategically integrate environmental issues into a firm’s existing business approach, less munificence and dynamism in the task environment, and reduced financial fluctuations. Negative environmental deviation is decreased through a demonstrated capacity to strategically integrate environmental issues into a firm’s existing strategic approach, and related to greater munificence and dynamism in the task environment, reduced profitability and increased financial fluctuations. Lastly, although there are no significant main effects for corporate environmental legitimacy, the paradoxical combination of negative deviation and environmental legitimacy can reduce the severity of the negative financial results to negative deviation, both in terms of profitability and financial fluctuations.

This dissertation examines two main research questions: Why do firms deviate from their predicted level of toxic emissions, and how do these differences relate to financial performance? The objective is threefold: (1) to understand deviation in corporate environmental performance by looking at both industry and firm level variables, (2) to see how this deviation relates to both profitability and fluctuations in financial performance, and (3) to see if, and how, corporate environmental legitimacy affects the relationship between corporate environmental deviation and corporate financial performance. To achieve this objective the construct “corporate environmental performance deviation” is developed. It is defined as the extent to which a firm’s environmental performance deviates from its predicted performance, and is used to capture within-firm strategic choices in environmental management. Predicted environmental performance is calculated based on certain firm characteristics such as size and industry. Actual environmental performance is calculated using a weighted score of air emissions obtained from the Toxic Release Inventory (TRI) database. The difference between these two values represents a corporation’s environmental performance deviation. Corporate environmental performance deviation focuses on strategic choices related to environmental management, while recognizing that environmental management is the result of both institutional pressures and within-firm strategic decisions. Aligned with this focus, variables 2 related to this strategic choice are used to explain deviation in environmental management, including an environmental integration capability, firm strategy, and industry munificence and dynamism. Associated with the internal and external organizational analysis, institutional theory and the resource-based view (RBV) are used to explore the tension between deviation to increase competitiveness versus isomorphism to attain legitimacy. The sample is composed of 311 U.S. firms who have reported their toxic air releases to the TRI from 1998-2007. The sample is broken down into two subsets, those that exceed (positive deviation) or fail to meet (negative deviation) predicted environmental performance. Results of a longitudinal analysis show that positive environmental deviation is related to a greater capacity to strategically integrate environmental issues into a firm’s existing business approach, less munificence and dynamism in the task environment, and reduced financial fluctuations. Negative environmental deviation is decreased through a demonstrated capacity to strategically integrate environmental issues into a firm’s existing strategic approach, and related to greater munificence and dynamism in the task environment, reduced profitability and increased financial fluctuations. Lastly, although there are no significant main effects for corporate environmental legitimacy, the paradoxical combination of negative deviation and environmental legitimacy can reduce the severity of the negative financial results to negative deviation, both in terms of profitability and financial fluctuations.

En les darreres dècades el nombre d'accidents ocurreguts en la industria química i durant el transport de mercaderies perilloses ha augmentat substancialment, registrant-se en la seva majoria en zones densament poblades. Els núvols de gasos tòxics solen originar-se en aquests accidents i malgrat que són menys probables que altres tipus d'accidents, poden afectar grans extensions i contaminar zones poblades, provocant greus conseqüències. Això comporta un gran repte per a les autoritats civils, que han d'avaluar i decidir l'àrea que cal evacuar i l'àrea en la que s'ha d'implementar el confinament com a mesura de protecció. L'avaluació de l'efectivitat del confinament comprèn tres etapes fonamentals: el càlcul de la dispersió exterior, el càlcul de la concentració interior en funció de la concentració exterior i l'avaluació dels efectes adversos per a la salut. Aquesta tesi s'enfoca principalment en l'estudi de la segona etapa, la qual és funció de la taxa d'infiltració d'aire en les edificacions.Inicialment es va realitzar una extensa revisió bibliogràfica sobre les tres etapes, fent èmfasi en la cerca de models pel càlcul de la concentració interior, la taxa d'infiltració y l'hermeticitat de les vivendes. Posteriorment, a través d'una anàlisi de sensibilitat es trobà que la taxa de renovació d'aire té una gran influencia sobre l'efectivitat del confinament i, a més, atès que aquesta varia per cada edificació, el coneixement de la seva distribució en una població és necessari per a una avaluació adequada de l'efectivitat del confinament, ja que suposar-la constant per a totes les edificacions pot comportar sobreestimacions o subestimacions del radi d'evacuació. Per tant, amb la finalitat d'obtenir una aproximació de la distribució de l'hermeticitat, es va aplicar el model desenvolupat pel Lawrence Berkeley National Laboratory (LBNL), que prové de dades de vivendes nord-americanes, a les vivendes catalanes. De tota manera, els resultats obtinguts es trobaven esbiaixats a les zones climàtiques, essent les prediccions per a vivendes ubicades en zones seques més hermètiques que en zones humides. En el cas de Catalunya, on les tècniques constructives no varien significativament d'una zona a una altra i la majoria de vivendes estan construïdes a base de materials pesats, no és d'esperar una diferència tan marcada com la predita pel model del LBNL. Per tant, es va decidir desenvolupar un model per a les vivendes catalanes utilitzant la base de dades de taxes d'infiltració de vivendes unifamiliars del CETE de Lyon, ja que aquestes vivendes tenen més similitud amb les vivendes catalanes que no pas les nord-americanes.El model desenvolupat, denominat UPC-CETE, permet estimar l'hermeticitat de les vivendes unifamiliars en funció de l'àrea, el número de pisos, l'edat i el tipus d'estructura constructiva: lleugera o pesada. Els valors d'hermeticitat predits amb aquest model foren menors que els obtinguts amb el model del LNBL, tal com s'esperava. Finalment, per tal de validar i millorar el model desenvolupat, es van realitzar mesures de la taxa de renovació d'aire en diverses vivendes de Catalunya i també en habitacions prèviament condicionades per ser utilitzades com a refugi, per tal d'avaluar la reducció guanyada sobre la taxa de renovació de tota la vivenda. Com a mitjana, s'obtingueren reduccions d'un 35% i es trobà que les reduccions més grans tenien lloc en vivendes antigues, amb àrees petites d'una o dues plantes. El model UPC-CETE millorat a partir dels resultats obtinguts en les proves experimentals, s'incorporà a la metodologia per avaluar l'efectivitat del confinament en l'etapa d'estimació de la taxa de renovació d'aire, evitant l'ús d'un valor constant per a totes les vivendes i promovent així l'ús d'una distribució d'aquest paràmetre per secció censal afectada dins la població. / During the last decades the number of accidents in chemical industries and during transportation of hazardous substances has significantly increased, with most of them occurring in highly populated areas. One of the possible accidents is a toxic gas cloud, which although less common than other major hazards could affect larger areas reaching populated zones and producing more severe consequences. This implies then, a great challenge to emergency managers who must plan and decide the areas where protection measures should be implemented: shelter in place and/or evacuation. The assessment of the effectiveness of shelter in place is subjected to three main stages: the calculation of the outdoor gas dispersion, the estimation of indoor concentration from outdoor concentration and the evaluation of human vulnerability. This thesis is mainly focused on the study of the second stage which is primarily a function of buildings leakage.Initially we performed a bibliographic survey with special interest on the models to estimate indoor concentration from outdoor concentration, airtightness of dwellings and ventilation models. Then, through a sensitivity analysis, we found that the air exchange rate has a great influence on the effectiveness of shelter in place. Moreover, since this parameter is different for each building, the knowledge of the distribution of this variable in the affected population would lead to a more accurate assessment of the effectiveness of shelter in place, because if we assume it as a fix value, constant for all buildings, over or underestimations of the evacuation radius may occur. Therefore, with the aim of making an estimation of the airtightness distribution in Catalunya, we applied the model developed by the Lawrence Berkeley National Laboratory (LBNL), a model based on data from North American dwellings, to Catalan dwellings. The results obtained were influenced by climate zones, due to the coefficients of the model, being more airtight the predictions for dwellings located in dry climates than for dwellings in humid zones. In the case of Catalunya, where constructions techniques do not differ significantly from one zone to another and most of the dwellings consist of a heavy structure, a difference such as that predicted by the model of the LBNL is not expected. Consequently, we decided to develop a model for Catalan dwellings using the air leakage database from the CETE de Lyon, since French dwellings are more likely to Catalan dwellings than US dwellings. The model developed, named the UPC-CETE model, predicts the airtightness of single-family dwellings as a function of the floor area, the age, the number of stories and the structure type: light or heavy. The airtihgtness values predicted with this model were smaller than those predicted with the model of the LBNL, as was expected. Finally, in order to validate and improve the model developed we carried out a series of trials to measure the air exchange rate in some Catalan dwellings. Measurements in sealed rooms were also performed with the aim of assessing the reduction gained on the air exchange rate with regards to the air exchange rate of the whole dwelling. On average, we obtained reductions of 35% and found that larger reductions belonged to old dwellings with small floor areas and 1 or 2 stories. The improved model was incorporated on the methodology to assess shelter in place effectiveness on the stage concerning the estimation of the air exchange rate of the dwellings located on the affected zone; therefore, the assumption of a constant value is avoided. These measurements and the model constitute therefore the first proposal for estimating the airtightness distribution of single-family dwellings that could be used by Catalan authorities for emergency response planning.

Background and Purpose Low socioeconomic status (SES) populations as well as minorities are often exposed to a disproportionate number of hazardous chemical including hydrogen fluoride, benzene and formaldehyde (Bullard, 2008). The sources of these hazards may include noxious land uses such as incinerators and landfills, Superfund sites, Toxic Release Inventory (TRI) facilities, sewer and water treatment plants, and other locally unwanted land uses (Choi, Shim, Kaye, & Ryan, 2006). The disproportionate burden often results in increased exposure to harmful environmental conditions for affected communities (Wilson et al., 2014). The objectives of this study are to evaluate the relevance of demographic characteristics to (1) TRI facility location, (2) TRI chemical emissions, and (3) incidence and resolution of facility complaints. Methods The study area is the Atlanta Metropolitan Statistical Area (MSA), designated by the United States Office of Management and Budget is comprised of 20 counties. Multivariate logistic regression was used to assess the relative importance of race and socioeconomic variables in predicting whether a TRI facility was located in a census tract. We applied multiple regression models to examine the association between amount of air toxics released from TRI facilities in the census tract (dependent variable), the number of emissions from TRI facilities in the census tract and the amount of chemicals released per emission and socio-demographic variables at the census tract level. Additionally, multivariate ordinal logistic regression was used to evaluate the association between the number of complaints to toxic chemicals and time to resolution of complaints and the covariates (SES and race/ethnicity) at the census tract level. Results In multivariate models the odds ratio for the presence of a TRI facility is 0.89 (p=0.002) for each 1% increase of females with a college degree and 2.4 (p Discussion and Conclusion We found evidence of racial and socio-demographic disparities in the burden of TRI facilities and chemical emissions in the Atlanta MSA. We observed a trend for toxic chemicals emitted suggesting that more blacks and Hispanics were burdened by and potentially exposed to TRI facilities than were Whites. There was only one predictor, percentage of females with a college degree, where we observed an inverse and statistically significant association with the amount of chemical emissions in pounds. We also found evidence that of potential differences in regulation processes of TRI facilities. Overall, results indicate that race/ethnicity and socioeconomic composition play a role in TRI facility siting and TRI facility emissions indicating burden disparities for low-SES populations as well as non-Whites in the Atlanta MSA. These results are similar to results presented in the environmental justice literature.