Spillovers and State Politics: Explaining Variation in U.S. Water Quality Permit Stringency

Why do environmental regulators allow some facilities to discharge more water pollution than similar facilities in other locations? Drawing on general theories of regulatory decisionmaking, this study assesses four possible reasons: (1) variation in governments’ ability to export pollution to other political jurisdictions, (2) variation in the demographic composition of the neighborhood surrounding the facility, (3) variation in local communities’ ability to mobilize for effective collective action, and (4) variation in subnational political context. Analyses of effluent discharge limits imposed by the U.S. states on two common classes of water pollution indicate that state regulators allow greater discharges when the receiving river crosses state lines, and that they are responsive to a variety of other demographic and political factors. The specific factors, however, often vary across the two pollutants assessed. These results suggest that subnational political considerations may shape the conditions imposed in water pollution permits, and, ultimately, water quality outcomes.