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Measuring the effects of the Clean Air Act Amendments on ambient PM10 concentrations: The critical importance of a spatially disaggregated analysis

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  • Auffhammer, Maximilian
  • Bento, Antonio M.
  • Lowe, Scott E.

Abstract

We examine the effects of the 1990 Clean Air Act Amendments (CAAAs) on ambient concentrations of PM10 in the United States between 1990 and 2005. We find that non-attainment designation has no effect on the "average monitor" in non-attainment counties, after controlling for weather and socioeconomic characteristics at the county level. In sharp contrast, if we allow for heterogeneous treatment by type of monitor and county, we do find that the 1990 CAAAs produced substantial effects. Our best estimate suggests that PM10 concentrations at monitors with concentrations above the national annual standard dropped by between 7 and , which is roughly equivalent to a 11-14% drop. We also show that monitors which were in violation of the daily standard experience two fewer days in violation of the daily standard the following year. Empirical results suggest that this treatment effect is independent of whether the Environmental Protection Agency (EPA) has finalized the non-attainment designation.

Suggested Citation

  • Auffhammer, Maximilian & Bento, Antonio M. & Lowe, Scott E., 2009. "Measuring the effects of the Clean Air Act Amendments on ambient PM10 concentrations: The critical importance of a spatially disaggregated analysis," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 15-26, July.
  • Handle: RePEc:eee:jeeman:v:58:y:2009:i:1:p:15-26
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    1. Henderson, J Vernon, 1996. "Effects of Air Quality Regulation," American Economic Review, American Economic Association, vol. 86(4), pages 789-813, September.
    2. Daniel L. Millimet & John A. List & Thanasis Stengos, 2003. "The Environmental Kuznets Curve: Real Progress or Misspecified Models?," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 1038-1047, November.
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    Cited by:

    1. repec:ucp:jpolec:doi:10.1086/691465 is not listed on IDEAS
    2. Lang, Corey, 2015. "The dynamics of house price responsiveness and locational sorting: Evidence from air quality changes," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 71-82.
    3. Adam Isen & Maya Rossin-Slater & W. Reed Walker, 2017. "Every Breath You Take—Every Dollar You’ll Make: The Long-Term Consequences of the Clean Air Act of 1970," Journal of Political Economy, University of Chicago Press, vol. 125(3), pages 848-902.
    4. Islam, Asif M. & López, Ramón E., 2015. "Government Spending and Air Pollution in the US," International Review of Environmental and Resource Economics, now publishers, vol. 8(2), pages 139-189, July.
    5. Asici, Ahmet Atıl, 2011. "Economic growth and its impact on environment: A panel data analysis," MPRA Paper 30238, University Library of Munich, Germany.
    6. Glenn Sheriff & Ann E. Ferris & Ronald J. Shadbegian, 2015. "How Did Air Quality Standards Affect Employment at U.S. Power Plants? The Importance of Stringency, Geography, and Timing," NCEE Working Paper Series 201501, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2015.
    7. Montero, José-María & Fernández-Avilés, Gema, 2015. "Functional Kriging Prediction of Pollution Series: The Geostatistical Alternative for Spatially-fixed Data/Predicción de series de contaminación mediante kriging funcional. La alternativa geoestadísti," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 33, pages 145-179, Enero.
    8. Maximilian Auffhammer & Antonio M. Bento & Scott E. Lowe, 2011. "The City-Level Effects of the 1990 Clean Air Act Amendments," Land Economics, University of Wisconsin Press, vol. 87(1), pages 1-18.
    9. Matthew Gibson, 2016. "Regulation-Induced Pollution Substitution," Department of Economics Working Papers 2016-04, Department of Economics, Williams College.
    10. Cerruti, Davide, 2013. "No free polluting anymore: The impact of a vehicle pollution charge on air quality," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150575, Agricultural and Applied Economics Association.
    11. Corey Lang, 2012. "The Dynamics of House Price Capitalization and Locational Sorting: Evidence from Air Quality Changes," Working Papers 12-22, Center for Economic Studies, U.S. Census Bureau.
    12. Malina, Christiane & Fischer, Frauke, 2012. "The impact of low emission zones on PM10 levels in urban areas in Germany," CAWM Discussion Papers 58, University of Münster, Center of Applied Economic Research Münster (CAWM).
    13. Martin D. Smith & Frank Asche & Lori S. Bennear & Atle Oglend, 2014. "Spatial-dynamics of Hypoxia and Fisheries: The Case of Gulf of Mexico Brown Shrimp," Marine Resource Economics, University of Chicago Press, vol. 29(2), pages 111-131.
    14. Kazuyuki Iwata & Toshi H. Arimura & Tetsuya Shimane, "undated". "The effectiveness of vehicle emission control policies: Evidence from Japanese experience," Working Papers e77, Tokyo Center for Economic Research.
    15. repec:mut:wpaper:58 is not listed on IDEAS
    16. Grainger, Corbett A., 2012. "The distributional effects of pollution regulations: Do renters fully pay for cleaner air?," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 840-852.
    17. Wolff, Hendrik, 2014. "Keep Your Clunker in the Suburb: Low Emission Zones and Adoption of Green Vehicles," IZA Discussion Papers 8180, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Air pollution Clean air act Spatial modeling;

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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