Government Spending and Air Pollution in the US

Asif Islam and López, Ramón E.
Authors registered in the RePEc Author Service: Ramon Lopez

International Review of Environmental and Resource Economics, 2015, vol. 8, issue 2, 139-189

Abstract: This study examines the effect of the composition of federal and state government spending on various important air pollutants in the United States using a newly assembled data set of government expenditures. The results indicate that a reallocation of spending from private goods to social and public goods by state and local governments reduces air pollution concentrations while changes in the composition of federal spending have no effect. An increase in the share of social and public goods spending by state and local governments by 1 standard deviation reduces sulfur dioxide concentrations by 2–3%, particular matter 2.5 concentrations by 3–5%, and ozone concentrations by 2–6% of their respective standard deviations. The results are robust to various sensitivity checks.

Keywords: Air pollution; Government spending; Public goods; Market imperfections (search for similar items in EconPapers)
JEL-codes: H40 H50 Q53 Q58 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (17)

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Related works:
Working Paper: Government Spending and Air Pollution in the US (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:now:jirere:101.00000068

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