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Looking Back at 50 Years of the Clean Air Act

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  • Joseph E. Aldy
  • Maximilian Auffhammer
  • Maureen Cropper
  • Arthur Fraas
  • Richard Morgenstern

Abstract

We synthesize and review retrospective analyses of federal air quality regulations to examine the contributions of the Clean Air Act 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.

Suggested Citation

  • Joseph E. Aldy & Maximilian Auffhammer & Maureen Cropper & Arthur Fraas & Richard Morgenstern, 2020. "Looking Back at 50 Years of the Clean Air Act," NBER Working Papers 26687, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26687
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    2. Tom Schmitz & Italo Colantone & Gianmarco Ottaviano, 2024. "Regional and Aggregate Economic Consequences of Environmental Policy," Working Papers 2024.10, Fondazione Eni Enrico Mattei.
    3. Tom Schmitz & Italo Colantone & Gianmarco Ottaviano, 2024. "Regional and Aggregate Economic Consequences of Environmental Policy Abstract: This paper shows how to combine microeconometric evidence on the effects of environmental policy with a macroeconomic mod," BAFFI CAREFIN Working Papers 24225, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    4. Auffhammer, Maximilian, 2023. "Localizing Environmental Regulation: The Case of Boutique Fuels," RFF Working Paper Series 23-20, Resources for the Future.
    5. Aldy, Joseph E., 2022. "Learning How to Build Back Better through Clean Energy Policy Evaluation," RFF Working Paper Series 22-15, Resources for the Future.
    6. Luo, Ximing & Dong, Cong & Dong, Xiucheng, 2024. "How economic transformation influence the employment of resource-based cities: Evidence from Shanxi Province, China," Resources Policy, Elsevier, vol. 89(C).
    7. Aldy, Joseph E. & Atkinson, Giles & Kotchen, Matthew J., 2021. "Environmental benefit-cost analysis: a comparative analysis between the United States and the United Kingdom," LSE Research Online Documents on Economics 110879, London School of Economics and Political Science, LSE Library.
    8. Antonio M. Bento & Noah Miller & Mehreen Mookerjee & Edson Severnini, 2023. "Incidental Adaptation: The Role of Non-climate Regulations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 305-343, November.

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    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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