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Assessing the Impact of National Air Quality Standards on Agricultural Land Values: Insights from Corn and Soybean Regions

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  • Cécile Couharde
  • Rémi Generoso

Abstract

We examine the impact of the National Ambient Air Quality Stan-dards, as defined by the Clean Air Act, on agricultural land valueswithin the corn and soybean regions of the United States. To achievethis objective, agricultural census data on farmland values are com-bined with pollution exposure metrics as defined by the Environmen-tal Protection Agency. Using a difference-in-differences approach andconducting various robustness checks, we find that compliance with airquality standards has a statistically significant negative effect on agri-cultural land values at the county level. Moreover, evidence from quan-tile regression analysis suggests that counties in the lower quantiles failto translate the economic and environmental benefits of pollution re-duction into increased farmland values, unlike their counterparts withthe highest-valued lands.

Suggested Citation

  • Cécile Couharde & Rémi Generoso, 2024. "Assessing the Impact of National Air Quality Standards on Agricultural Land Values: Insights from Corn and Soybean Regions," EconomiX Working Papers 2024-9, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2024-9
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    More about this item

    Keywords

    Air Quality Standards; Agricultural Land Values; Difference- in-Differences; Quantile Regression;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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