Adjusting to Permanent Environmental Changes: Evidence from Agriculture and the US Acid Rain Program
Sanders, Nicholas, & Alan Barreca
Unpublished working paper | 2015
The Acid Rain Program (ARP) of 1995 regulated the sulfur dioxide (SO2) emissions of pollution-intensive power plants in the United States (US). We are the first to examine how this large pollution-abatement program affected agricultural output in the US, with a focus on corn and soy, the two largest crops by both acreage and revenues. The expected impact of the ARP is ambiguous. Reductions in airborne SO2 imply less harmful acid deposition, but also less beneficial soil sulfur. Our core identification strategy takes advantage of differing treatment intensity across counties based on distance from regulated power plants, with additional tests by wind direction and soil types.
Coal, Smoke, and Death: Bituminous Coal and American Home Heating
Barreca, Alan, Karen Clay, & Joel Tarr
NBER Working Paper | 2014 | Currently revising
Air pollution was severe in many urban areas of the United States in the first half of the twentieth century, in part due to the burning of bituminous coal for heat. We estimate the effects of this bituminous coal consumption on mortality rates in the U.S. during the mid 20th century. Coal consumption varied considerably during the 20th century due to coal-labor strikes, wartime oil and gas restrictions, and the expansion of gas pipelines, among other reasons. To mitigate the influence of confounding factors, we use a triple-differences identification strategy that relies on variation in coal consumption at the state-year-season level. It exploits the fact that coal consumption for heating was highest in the winter and uses within-state changes in mortality in non-winter months as an additional control group. Our estimates suggest that reductions in the use of bituminous coal for heating between 1945 and 1960 decreased winter all-age mortality by 1.25 percent and winter infant mortality by 3.27 percent, saving 1,923 all age lives per winter month and 310 infant lives per winter month. Our estimates are likely to be a lower bound, since they primarily capture short-run relationships between coal and mortality.