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Do Earmarks Target Low-Income and Minority Communities? Evidence from US Drinking Water

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  • David A. Keiser
  • Bhashkar Mazumder
  • David Molitor
  • Joseph S. Shapiro
  • Brant J. Walker

Abstract

The quality and inequality of US drinking water investments have gained attention after recent environmental disasters in Flint, Michigan, and elsewhere. We compare the targeting of subsidized loans provided through the Safe Drinking Water Act with the targeting of congressional drinking water earmarks ("pork barrel" spending). Earmarks are critiqued for potentially privileging wealthier and politically connected communities. We find that earmarks target Black, Hispanic, and low-income communities, partly due to targeting water systems serving large populations. Earmark and loan targeting differ across all demographics we analyze. Compared to loans, earmarks disproportionately target Hispanic but not Black or low-income communities.

Suggested Citation

  • David A. Keiser & Bhashkar Mazumder & David Molitor & Joseph S. Shapiro & Brant J. Walker, 2024. "Do Earmarks Target Low-Income and Minority Communities? Evidence from US Drinking Water," AEA Papers and Proceedings, American Economic Association, vol. 114, pages 36-40, May.
    • Handle: RePEc:aea:apandp:v:114:y:2024:p:36-40
    DOI: 10.1257/pandp.20241009
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    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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