Abhinav Shubham

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Area: Operations Management

Committee Members: Dr. Ravi Subramanian (Chair), Dr. Manpreet Hora, Dr. Basak Kalkanci, Dr. Vinod Singhal, Dr. Suvrat Dhanorkar

Dissertation title: Disparities in Environmental Impacts and Occupational Hazards from Facility Operations

Research Overview:

In my research, I utilize econometric modeling and causal inference techniques to explore how the operational decisions of industrial facilities contribute to socio-geographic inequities in non-financial performance measures. My dissertation specifically examines two dimensions of these inequities: (a) disproportionate environmental burdens imposed on minority communities; and, (b) disproportionate occupational risks and hazards experienced by the workforce in these communities. Through my research, I aim to enhance the understanding of socioeconomic disparities by uncovering the mechanisms by which these inequities arise. My research offers empirical evidence and guidance for managers and policymakers to promote more equitable operational practices and regulatory frameworks.

Section 1: An Empirical Investigation of Environmental Impacts and Practices of Facilities in Minority Communities.

Abstract: Environmental Justice (EJ) encapsulates the idea of fairness in the protection of individuals and communities from environmental hazards, regardless of economic or social background. EJ is relevant to the practice of operations management because of inequities that may result from socio-geographically disparate operational practices. I investigate facility-level heterogeneity in environmental impacts and impact reductions in host communities. In doing so, my work addresses an important research gap at the interface between Environmental Justice (EJ) and Operations Management by advancing the emphasis on EJ from an aggregative geographic level to the facility level, where managerial decisions are made. Specifically, I examine how similar facilities operating in minority and non-minority communities differ in the generation, mitigation, and avoidance of environmental impacts, and I explore operational, organizational, and institutional drivers of these differences. I draw on chemical release and environmental risk data from the US EPA’s Toxics Release Inventory and Risk-Screening Environmental Indicators Model, demographic data from the US Census Bureau’s American Community Survey, and additional facility-level data from the National Establishment Time Series. Using matching and panel data methods, I find robust evidence that facilities in minority communities generate greater environmental impacts. However, I do not observe significantly higher levels of impact avoidance or mitigation compared to facilities in non-minority communities. While seemingly encouraging, such an approach is deficient from an EJ standpoint due to the persistence of contemporaneous disparities. Additional analyses reveal that the disparities are driven by facility age, operational complexity, leanness, chemical usage, process controls, and regulatory frameworks. I provide actionable insights for managers and regulators based on my findings. Managers can enhance EJ outcomes through the following actions that address the underlying drivers of greater environmental impacts in minority communities: retiring or refurbishing ageing facilities, rationalizing or substituting particularly hazardous process inputs, investing in leaner operations, and enhancing process controls. I recommend the consideration of cumulative local environmental burdens in policy design and enforcement and I identify high-disparity sectors for prioritizing regulatory efforts.

Section 2: An Empirical Investigation of Establishment-Level Operations and Occupational Hazards in Minority Communities.

Abstract: Socioeconomic factors, coupled with unequal employment opportunities and differing establishment-level operational characteristics, may contribute to inequities in exposure to occupational safety hazards. In this paper, I study deficiencies in occupational hazards and workplace safety outcomes between similar establishments operating in disadvantaged and non-disadvantaged communities. Furthermore, I also consider the role of external and internal interventions in moderating these disparities, specifically, random inspections by federal regulators and successful unionization efforts by employees. For this study, I assemble data from: (a) OSHA’s Open Data Initiative (ODI) survey responses; (b) Inspections and violations records in OSHA’s Integrated Management Information System (IMIS) database; (c) Planned inspection lists of OSHA’s Site-Specific Targeting (SST) program; (d) National Labor Relations Board’s (NLRB) union certification results; and, (e) Demographic data from the US Census Bureau. I employ matching, differences-in-differences, and regression discontinuity methodologies to address identification challenges. Additionally, I investigate the mechanisms by which disparities in occupational hazards may arise by leveraging data on firm- and location-level characteristics.