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Clean Identification? The Effects of the Clean Air Act on Air Pollution, Exposure Disparities, and House Prices

Author

Listed:
  • Lutz Sager

    (ESSEC Business School and THEMA (UMR 8184) - ESSEC Business School - THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

  • Gregor Singer

    (LSE - London School of Economics and Political Science)

Abstract

We assess the US 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 0.4 μg/ 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, however, appear larger than previously thought when leveraging regulatory variation.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Lutz Sager & Gregor Singer, 2025. "Clean Identification? The Effects of the Clean Air Act on Air Pollution, Exposure Disparities, and House Prices," Post-Print hal-05630840, HAL.
    • Handle: RePEc:hal:journl:hal-05630840
    DOI: 10.1257/pol.20220745
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    Cited by:

    1. Jin, Xin & Gao, Yang, 2026. "Automated monitoring and air pollution in border regions," Energy Economics, Elsevier, vol. 154(C).

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    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • 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
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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