Estudios Fronterizos (Jan 2013)
Hazardous waste shipping in the northern border of Mexico: The situation of Baja California
Abstract
In this document we evaluate the determinants of shipments of hazardous waste to the US. We consider a sample of firms operating in the state of Baja California for the 2008–2010 sample period. The analysis consists on the estimation of two econometric specifications. The first refers to a truncated model in the spirit of Tobit. The second is a probabilistic model. The results of the Tobit model suggest that size, location and origin of the firm influence the amount of shipments. In particular, shipments are positively associated with larger firms; those located in the municipality of Tijuana and those whose origin is foreign. The probabilistic model finds that a depreciation of the Mexican peso contributes to an increase in the likelihood of sending a shipment. This may be the result of an improvement in the border economic environment due to the depreciation of the currency.