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A Change Point Analysis of the Impact of "Environmental Federalism" on Aggregate Air Quality in the United States: 1940--98

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  • Thomas B. Fomby
  • Limin Lin

Abstract

During President Reagan's administration, environmental policy making was substantially shifted from the federal level to the state and local levels. We use techniques in Bai (1997a, 1997b) to determine change points in the trends of three important air pollution series. We find that the beneficial trends in the emission series began with federal legislation and were not due to the Reagan devolution. However, second-round change point tests indicate that the beneficial trends in the emissions series that began with federal legislation continued unabated following the Reagan devolution. (JEL Q20, C50) Copyright 2006, Oxford University Press.

Suggested Citation

  • Thomas B. Fomby & Limin Lin, 2006. "A Change Point Analysis of the Impact of "Environmental Federalism" on Aggregate Air Quality in the United States: 1940--98," Economic Inquiry, Western Economic Association International, vol. 44(1), pages 109-120, January.
    • Handle: RePEc:oup:ecinqu:v:44:y:2006:i:1:p:109-120
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    File URL: http://hdl.handle.net/10.1093/ei/cbj006
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    Citations

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    Cited by:

    1. Zhijun Gu & Chaowei Tian & Zeyuan Zheng & Shujian Zhang, 2022. "Favorable Fiscal Self-Sufficiency Enables Local Governments to Better Improve the Environmental Governance—Evidence from China’s Lower-Pollution Areas," Sustainability, MDPI, vol. 14(23), pages 1-14, December.
    2. Banzhaf, H. Spencer & Chupp, B. Andrew, 2012. "Fiscal federalism and interjurisdictional externalities: New results and an application to US Air pollution," Journal of Public Economics, Elsevier, vol. 96(5), pages 449-464.
    3. Sjöberg, Eric & Xu, Jing, 2018. "An Empirical Study of US Environmental Federalism: RCRA Enforcement From 1998 to 2011," Ecological Economics, Elsevier, vol. 147(C), pages 253-263.
    4. B. Andrew Chupp, 2011. "Spillovers and Taxes: What Drives Strategic Competition in Environmental Policies?," Working Paper Series 20110402, Illinois State University, Department of Economics.
    5. Luc Doyen & Sébastien Lavaud & Anne-Sophie Masure, 2017. "RMA newsletter Spring 2017," Post-Print hal-02196591, HAL.
    6. Millimet, Daniel L., 2013. "Environmental Federalism: A Survey of the Empirical Literature," IZA Discussion Papers 7831, Institute of Labor Economics (IZA).
    7. Han, Chao & Tian, Xian-Liang, 2022. "Less pollution under a more centralized environmental system: Evidence from vertical environmental reforms in China," Energy Economics, Elsevier, vol. 112(C).
    8. Zinnia Mukherjee & Niloufer Sohrabji, 2022. "Environmental Regulation and Export Performance: Evidence from the USA," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 48(2), pages 198-225, April.

    More about this item

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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