Clean identification? The effects of the clean air act on air pollution, exposure disparities and house prices

Sager, Lutz and Singer, Gregor (2024) Clean identification? The effects of the clean air act on air pollution, exposure disparities and house prices. American Economic Journal: Economic Policy. ISSN 1945-7731 (In Press)

Text (Clean Identification? The Effects of the Clean Air Act on Air Pollution, Exposure Disparities and House Prices) - Accepted Version Pending embargo until 1 January 2100. Download (8MB) | Request a copy

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Abstract

We assess the U.S. Clean Air Act standards for fine particulate matter (PM₂.₅). Using high resolution data, we find that the 2005 regulation reduced PM₂.₅ levels by 0.4μg/m³ over five years, with larger effects in more polluted areas. Standard difference-in-differences overstates these effects by a factor of three because time trends differ by baseline pollution, a bias we overcome with three alternative approaches. We show that the regulation contributed to narrowing Urban-Rural and Black-White PM₂.₅ exposure disparities, but less than difference-in-differences suggest. Pollution damages capitalized into house prices, on the other hand, appear larger than previously thought when leveraging regulatory variation.

Item Type:	Article
Official URL:	https://www.aeaweb.org/articles?id=10.1257/pol.202...
Additional Information:	© 2024 The Author(s)
Divisions:	Grantham Research Institute
Subjects:	G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HB Economic Theory
Date Deposited:	08 Feb 2024 16:06
Last Modified:	22 Apr 2024 10:21
URI:	http://eprints.lse.ac.uk/id/eprint/121984

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