Looking Back at 50 Years of the Clean Air Act
Journal of Economic Literature
vol. 60,
no. 1, March 2022
(pp. 179-232)
Abstract
We synthesize and review retrospective analyses of federal air quality regulations to examine the contributions of the Clean Air Act (CAA) to the vast air quality improvements seen since 1970. Geographic heterogeneity in stringency affects emissions, public health, compliance costs, and employment. Cap-and-trade has delivered greater emission reductions at lower cost than conventional mandates, yet has fallen short of textbook ideals. Market power also influenced the CAA's benefits and costs. New benefit categories have been identified ex post, but specific technology requirements have not yet been rigorously evaluated. Comparisons of aggregate benefits and costs of the CAA are beyond present capabilities.Citation
Aldy, Joseph E., Maximilian Auffhammer, Maureen Cropper, Arthur Fraas, and Richard Morgenstern. 2022. "Looking Back at 50 Years of the Clean Air Act." Journal of Economic Literature, 60 (1): 179-232. DOI: 10.1257/jel.20201626Additional Materials
JEL Classification
- D61 Allocative Efficiency; Cost-Benefit Analysis
- K32 Environmental, Energy, Health, and Safety Law
- Q51 Valuation of Environmental Effects
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 Environmental Economics: Government Policy