Sager, Lutz and Singer, Gregor ORCID: 0000-0001-5917-0723
(2025)
Clean identification? The effects of the clean air act on air pollution, exposure disparities and house prices.
American Economic Journal: Economic Policy, 17 (1).
1 - 36.
ISSN 1945-7731
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Text (Clean Identification? The Effects of the Clean Air Act on Air Pollution, Exposure Disparities and House Prices)
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Abstract
We assess the US Clean Air Act standards for fine particulate matter (PM 2.5). Using high-resolution data, we find that the 2005 regulation reduced PM 2.5 levels by 0.4 μg/ m 3 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 PM 2.5 exposure disparities, but less than difference-in-differences suggest. Pollution damages capitalized into house prices, however, appear larger than previously thought when leveraging regulatory variation. (JEL D63, K32, Q52, Q53, Q58, R31).
Item Type: | Article |
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Official URL: | https://www.aeaweb.org/articles?id=10.1257/pol.202... |
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: | 21 Apr 2025 08:00 |
URI: | http://eprints.lse.ac.uk/id/eprint/121984 |
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