Making Sense of Toxic Releases in the Chemicals and Metals Industries: A Descriptive Analysis Timothy Larsen (Public Affairs Department) Dr. Mark Stephan (Public Affairs Department) Washington State University Vancouver Introduction Fifty years ago, access to corporate data was considered a privilege which was not available to all citizens. Over time, access to numerous types of information has become a right for all citizens of the United States. The movement to make information public started with financial institutions and then migrated to the government, providing access and freedom in its retrieval. The start of the movement towards broader disclosure was articulated in the early works of Joshua Brandeis, who later become a federal Supreme Court justice. He advocated that the financial institutions should disclose to their customers any and all information that would be relevant to customers’ investments and personal bank accounts. This message eventually spread beyond financial information and now includes social, public health, and environmental data as well. The exploratory research found here is meant to help us better understand if environmental information disclosure does, in fact, impact how our industrial sectors work. With publicly available information, we can see what our major industries, like those in our “backyards” and near our schools, are doing with their industrial releases. The Environmental Protection Agency (EPA) established the Toxic Release Inventory (TRI) program in 1989. This program established a way for citizens to look into the companies next door and see what they were depositing into our air, water and land. By looking at the following graphs we get a better sense, over a timeline of ten years, of what our industries are doing and we can come up with possible explanations as to why these changes are occurring. National Trend The first thing that we did was compile information on the nation’s pollutants being released from all industrial sources. We used the Toxic Release Inventory (TRI) database located on the EPA website (www.epa.gov/tri) to access the data. What we came up with in our review of the data are the trends of pollutants over a 10 year period (1991-2000). We chose to look at the 1991 “core” chemicals in order to be consistent over the ten year time period that we examined. The graph shows that a significant drop in emissions of the core chemical set occurred from 1991 to 1992 with a relatively consistent decline in those emissions for the following years. Why did this occur? Are there particular industries that are causing this trend, or all of the U.S. industrial sectors acting in the same way? Are there variations across media (air, land, water)? Are there variations across states? Could these changes be signs that regulations are actually working? These are some of the many questions that arise when looking at the data. National Trends for All Industries Emissions (Pounds) 4,000,000,000 3,500,000,000 3,000,000,000 2,500,000,000 2,000,000,000 National Trend 1,500,000,000 1,000,000,000 500,000,000 0 1991 1993 1995 1997 1999 Years Industry by Years (91-95-00) Since we had questions as to why the trends occurred in the manner that they did, we took a closer look at which industries were driving this change by examining three years from the 10 year time span (1991, 1995, and 2000). From the data, we see that there are two major spikes in the total emissions of all of the registered industries. These spikes indicate that two industries, the Chemical and Primary Metals industries are the most significant actors when it comes to emissions. By examining these spikes we see that the Chemical industry’s releases are decreasing while the Primary Metals industry’s releases are increasing. We began to wonder why these two industries are showing such different results from one another. Is the Chemical industry being regulated more aggressively than Primary Metals? Are there technological factors that allow the Chemical industry to reduce its emissions that are not transferable to Primary Metals? Is it due to the market, where the consumers are eventually driving the amount that is produced? National Trends by Industry by Year 700,000,000 600,000,000 Emissions 500,000,000 1991 1995 2000 400,000,000 300,000,000 200,000,000 100,000,000 0 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Industry Standard Industrial Classification Codes 20 21 22 23 24 Food Tobacco Textiles Apparel Lumber 25 26 27 28 29 Furniture Paper Printing Chemicals Petroleum 30 31 32 33 34 Plastics Leather Stone/Clay/Glass Primary Metals Fabricated Metals 35 36 37 38 39 Machinery Electrical Equipment Transportation Equipment Measure/Photo Equpment Miscellaneous Chemicals and Primary Metals From the data that was collected at a national level, we see that there are two industries that stand above the rest: the Chemical and the Primary Metals industries. We felt these spikes were significant enough to warrant further investigation. The trend we see when we analyze them separately from other industries, is that the Chemical industry is being driven downward steadily, whereas the Primary Metals industry has a steady increase until 1997, where it begins to slowly descend. With these graphs, we come to some more questions. First, are there reasons why these two industries are moving in the directions that they are? Do influences like political power or technological advances come into play? Are these changes market driven? Although we cannot answer these questions directly at this point, we can look into the possibilities a bit more by further disaggregating the data. Comparison of Chemical and Primary Metals Industry Emissions (1991-2000) Air, Water, Land Emissions (Pounds) 700,000,000 600,000,000 500,000,000 400,000,000 28 Chemicals 33 Primary Metals 300,000,000 200,000,000 100,000,000 0 1991 1993 1995 1997 1999 Years By Medium (Air, Water and Land) Since we had selected these two industries to observe more closely, we next decided to look at the different media, like air, water and land, into which they make releases. This let us see which medium is more affected by the industry rather than just looking at the total emissions. From this, we see that the Chemical industry’s emissions are mainly into the air, while the Primary Metals industry’s emissions are mainly into the land. We can make comparison between the mediums in order to determine differences between the two industries. In particular, it becomes obvious that decreases in emissions in the Chemical industry are due to changes in air and water discharges. In contrast, the Primary Metals industry sees increases due to greater amounts of toxic waste on land. Emissions (Pounds) Trends in the Chemical and Primary Metals Industry for Air Emissions 500,000,000 400,000,000 300,000,000 28 Chemicals 33 Primary Metals 200,000,000 100,000,000 0 1991 1993 1995 1997 1999 Years Emissions (Pounds) Trends in the Chemical and Primary Metal industry for Water Emissions 12,000,000 10,000,000 8,000,000 28 Chemicals 33 Primary Metals 6,000,000 4,000,000 2,000,000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Years Emissions (Pounds) Trends in the Chemical and Primary Metal Industry for Land Emissions 300,000,000 200,000,000 28 Chemicals 33 Primary Metals 100,000,000 0 1991 1994 1997 2000 Years By State (Drivers and Outliers) It is also beneficial to examine the data state by state in order to better determine which states are driving the national results and which states might be serving as outliers. Thus, we examined each state over this time period. We looked at total emissions as well as air, water and land to see which states demonstrated the same or opposite trends as the national data. Though the states included here are only for illustrative purposes, they highlight a number of key points. First, state variations do exist, with some states clearly driving the overall results (e.g., Texas and the chemical industry emissions), while other states move against the grain (e.g., New Mexico and primary metals industry emissions). These variations raise further questions about the role of regulations, technological change, and other factors that drive the results. Emission (Pounds) Total Emissions for Chemicals in Texas (Driver) 180,000,000 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Chemical 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Years Emission (Pounds) Total Emissions for Chemicals in Louisana (Driver) 100,000,000 80,000,000 60,000,000 Chemicals 40,000,000 20,000,000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Years 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 Primary Metals 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 Emission (Pounds) Total Emissions for Primary Metals in Arizona (Driver) Years 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 00 20 99 19 98 19 97 19 96 19 95 19 94 19 93 19 19 19 92 Primary Metals 91 Emission (Pounds) Total Emissions for Primary Metals in Ohio (Driver) Years Total Emissions for Chemicals in Florida (Outlier) Emission (Pounds) 7,000,000 6,000,000 5,000,000 4,000,000 Chemical 3,000,000 2,000,000 1,000,000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Years Emission (Pounds) Total Emissions for Chemicals in Maryland (Outlier) 4,000,000 3,000,000 2,000,000 Chemical 1,000,000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Years 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Years 00 20 99 19 98 19 97 19 96 19 95 19 94 19 93 19 92 19 91 Primary Metals 19 Emission (Pounds) Total Emissions for Primary Metals in New Mexico (Outlier) Emission (Pounds) Land Emissions for Primary Metals in South Carolina (Outlier) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Primary Metals 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Years Conclusions Examination of the data leads to some initial conclusions: 1) Aggregate results hide important variations at lower levels of analysis. In particular, national trends hide significant differences across industries, media, and states. 2) Though in general there is good news to report about reductions in emissions, there are some trends which are less positive. In particular, in the Primary Metals industry there is mixed evidence that suggest that on-going reductions are not occurring 3) Some states seem to be leaders in emission reductions, others seem to be laggards. The lack of uniformity in trends across states raises a variety of questions about appropriate policy prescriptions to reduce pollution emissions. Possible explanations for the variations across industry, medium, and state A) Stricter regulations are targeted towards specific industries, media, and states. What do you think? Plausible? Somewhat plausible: In the United States there are variations across states in their regulations and maybe, more importantly, there are variations across regulations because land, air, and water pollution are all regulated under overlapping (but not identical) laws such as the Clean Air Act and Clean Water Act. B) More intense enforcement of regulations has been targeted towards specific industries, media, and states. What do you think? Plausible? Highly plausible: Enforcement in many cases can be key to whether regulations have an influence on the private sector. Some anecdotal evidence suggests that the Chemical Industry has been targeted in ways that other industries, including the Primary Metals industry, have not been targeted. C) Technological improvements have affected particular industries and/or media, but have not been influential across all industry or media. What do you think? Plausible? Plausible: Anecdotal evidence from the primary metals industry suggests that technological fixes to reduce land emissions have been limited, while clear gains have been made in reducing the amount of waste that finds its way to air and water. In fact, some reductions to air and water discharges may be leading to increases in land discharge amounts. The Chemical industry saw either no change or increases of emissions to land in the ten year period that there were decreases to air and water. D) Emissions have seen increases or decreases based on production changes across industries. That is to say, some industries are seeing decreases because production is down, while other industries are seeing increases because production is up. What do you think? Plausible? Not very plausible: Though it is true that numerous companies have moved their production facilities overseas (or just gotten out of the business completely), this has been less true of the Chemical industry and more true of the Primary Metals industry overall. Furthermore, the 1990s were a boom time economically and almost all industries were swept upward by this tide. E) The provision of information to the public has created a heretofore unexplained dynamic that engenders reductions in particular industries, media, and states. What do you think? Plausible? Somewhat plausible: The Chemical industry may have seen larger decreases in emission less due to regulations and more because of intense mass media scrutiny (especially in the late 1980s and early 1990s). It was this industry’s practices in the early 1980s and mid-1980s that caught the attention of the US Congress and prompted the creation of the TRI in the first place. That said, if we would expect communities to put the greatest attention on the biggest polluters, the fact the Primary Metals industry saw increases in emissions makes little sense. How could this industry get away with practices that other industries could not?