Impact of gentrification on environmental pressure in service micro‐enterprises

The study investigates whether local service micro‐enterprises (MEPs) in gentrifying neighborhoods face increasing complaints triggering inspections and regulatory pressure. Environmental records from 1992 to 2000 were reviewed for 383 filling stations, motor vehicle repair firms and dry cleaners in five Chicago neighborhoods. Significant differences in the number of complaints and inspections were found between gentrifying and gentrified neighborhoods, especially in the higher‐income gentrified neighborhood. No significant difference was found in enforcement. Regulatory pressure from environmental agencies adds to the financial, social and other regulatory pressures facing service MEPs that drove away or closed manufacturing firms in the past. Alternatively, new market opportunities with regulatory and social pressure could provide incentives to improve environmental behavior. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.