Co-location of Carbon Capture Projects with Pollution-intensive Manufacturing: Evidence from US Zip Codes

Abstract

This study examines the co-location of carbon capture projects (CCPs) with pollution-intensive industrial facilities across 26,086 US zip codes, employing Probit regressions and propensity score matching estimators to ensure robust casual inference. The results indicate that zip codes with pollution-intensive industries are 1.44% points more likely to host a CCP compared to those without such industries. The likelihood increases to 2.46% points in the top 25% of zip codes with the highest pollution volumes and 3.52% points in the top 25% with the most pollution-intensive facilities. Additionally, Probit regression results consistently reveal a negative association between population density and CCP presence, suggesting a preference for locating CCPs in less populated areas. These findings highlight the role of pollution-intensive industrial hubs in shaping CCP location decisions, offering valuable insights for infrastructure planning, policy development and climate change mitigation strategies.

Department(s)

Economics

Second Department

Psychological Science

Keywords and Phrases

carbon emissions; CCS; EPA; industrial hubs; Toxic Release Inventory (TRI)

International Standard Serial Number (ISSN)

1466-4283; 0003-6846

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2025 Taylor and Francis Group; Routledge, All rights reserved.

Publication Date

01 Jan 2025

Link to Full Text

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