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Economic Geography and Air Pollution Regulation in the United States

Author

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  • Hollingsworth, Alex
  • Jaworski, Taylor
  • Kitchens, Carl
  • Rudik, Ivan

    (Cornell University)

Abstract

We develop a quantitative economic geography model with endogenous emissions, amenities, trade, and labor reallocation to evaluate the spatial impact of the leading air quality regulation in the United States: the National Ambient Air Quality Standards (NAAQS). We find that the NAAQS generate $40 billion in annual welfare gains, first-best emissions pricing would increase this by an additional $70 billion, gains are concentrated in a small set of cities, and improved amenities attract nonmanufacturing workers. Atmospheric transport of emissions, labor reallocation, and trade are first-order factors for quantifying the level and distribution of both costs and benefits of the NAAQS.

Suggested Citation

  • Hollingsworth, Alex & Jaworski, Taylor & Kitchens, Carl & Rudik, Ivan, 2022. "Economic Geography and Air Pollution Regulation in the United States," SocArXiv x6fuw_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:x6fuw_v1
    DOI: 10.31219/osf.io/x6fuw_v1
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    References listed on IDEAS

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