Question

From an economic standpoint, why might low income neighborhoods be attractive locations for hazardous waste storage sites?

Answer 1

Low income neighbourhoods can be attractive locations for hazardous waste storage sites because:

(1) Hazardous waste storage sites can pose negative externality in terms of various pollutions like air pollution and water pollution. This pollution can reduce the economic value in the area where the hazardous waste storage sites are located. This can have an economic effect in terms of less economic growth of houses, offices and decreasing cost of land in that area. So, low income neighbourhoods where already the cost of land is lower can be considered for the hazardous waste storage sites as there the economic activity is already less.

(2) The low income neighborhood residents can also be willing to shift to a higher income neighborhood if they are given the money to shift and easily make way for the land needed for the hazardous waste site. This easy availability of land might not happen in high income neighborhoods.