Looking Back at 50 Years of the Clean Air Act

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

doi:10.1257/jel.20201626

Looking Back at 50 Years of the Clean Air Act

Joseph E. Aldy¹; Maximilian Auffhammer²; Maureen Cropper³; Arthur G. Fraas⁴; Richard Morgenstern⁴

¹ Harvard Kennedy School, Resources for the Future, NBER, and the Center for Strategic and International Studies. · ² University of California, Berkeley and NBER · ³ University of Maryland and Resources for the Future · ⁴ Resources For The Future

Journal of Economic Literature 2022 open access

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. (JEL D61, K32, Q51, Q53, Q58)

DOI: 10.1257/jel.20201626
Volume: 60 (1)
Pages: 179-232
Language: en
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