Downwind and Out : The Strategic Dispersion of Power Plants and their Pollution

US environmental policy cedes substantial authority to local agencies—creating potentials for polluters/governments to strategically export emissions. We identify such strategies among coal-fueled power plants. First, we document that electricity generators locate near administrative borders. As water influences borders/siting, we develop a simple, nonparametric test that shows coal plants located to reduce downwind exposure. Natural-gas plants—facing lower regulatory pressure—do not exhibit this behavior. Using a state-of-the-art, particle-trajectory model, we illustrate coal pollution’s extreme mobility: within 6 hours, 50% of coal plants’ emissions leave their source states—99% depart source counties. These strategic responses emphasize the importance of federal oversight and transport-focused regulation