Can the Internet Help Curb Environmental Injustice? Implications for Marginalized Communities

A well-informed public is better placed to act upon issues of concern such as environmental injustice. Hence, regulators mandate owners of certain types of private information to publicize it on a regular basis. However, without ease of information acquisition and dissemination, the value of such disclosures may be limited. In this paper, we study the role of the Internet in enabling public access to information about toxic releases from manufacturing facilities and assess the implications it has on curbing those releases. We also further explore the implications for minority communities. Using a panel dataset on toxic releases, and applying an instrumental variable approach, we find that Internet penetration reduces the level of toxic releases, and that regions with higher minority concentration enjoy a further reduction. We find, however, that firms engage in transferring toxic releases from one region to another. Our work highlights the empowering role of the Internet.