The impact of environmental regulations on the location of firms in the hazardous waste management industry

This paper examines the relationship between environmental regulations and the location decisions of hazardous waste management firms. This industry provides a powerful test of the effect of stare environmental regulations on location because environmental regulations significantly affect the cost of providing waste management. The results indicate that state spending on environmental programs can deter firms, as does potential public opposition. Spending affects the implementation and enforcement of regulations and thus is very important in firms' location choices. Hazardous waste management firms do not appear to be deterred by the stringency of regulations, but instead are attracted to more comprehensive policies.