Environmental disparities in urban Mexico: Evidence from toxic water pollution

Abstract

All else equal, disparities in environmental exposure are associated with disparities in health and economic well-being. Here, we combine 9 years of data on toxic water pollution discharges from more than 1600 industrial facilities across urban Mexico with geographic, economic, and sociodemographic data from ≈ 50,000 Mexican urban block groups. We first show that industrial facilities pollute more in marginalized neighborhoods and in neighborhoods that are becoming more marginalized over time. In contrast, we find no evidence for relationships between toxic water pollution and indigenous race. We then explore channels driving observed exposure disparities. We find evidence that environmental disparities in urban Mexico are associated with collective action, community pressure, and Coasian bargaining. We do not find evidence consistent with political economic or amenity-based sorting mechanisms.