A structured comparison of causal machine learning methods to assess heterogeneous treatment effects in spatial data

Kevin Credit () and Matthew Lehnert
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Kevin Credit: Maynooth University
Matthew Lehnert: Satelytics

Journal of Geographical Systems, 2024, vol. 26, issue 4, No 4, 483-510

Abstract: Abstract The development of the “causal” forest by Wager and Athey (J Am Stat Assoc 113(523): 1228–1242, 2018) represents a significant advance in the area of explanatory/causal machine learning. However, this approach has not yet been widely applied to geographically referenced data, which present some unique issues: the random split of the test and training sets in the typical causal forest design fractures the spatial fabric of geographic data. To help solve this issue, we use a simulated dataset with known properties for average treatment effects and conditional average treatment effects to compare the performance of CF models across different definitions of the test/train split. We also develop a new “spatial” T-learner that can be implemented using predictive methods like random forest to provide estimates of heterogeneous treatment effects across all units. Our results show that all of the machine learning models outperform traditional ordinary least squares regression at identifying the true average treatment effect, but are not significantly different from one another. We then apply the preferred causal forest model in the context of analysing the treatment effect of the construction of the Valley Metro light rail (tram) system on on-road CO2 emissions per capita at the block group level in Maricopa County, Arizona, and find that the neighbourhoods most likely to benefit from treatment are those with higher pre-treatment proportions of transit and pedestrian commuting and lower proportions of auto commuting.

Keywords: Causal forest; Heterogeneous treatment effects; Machine learning; Causal inference; Spatial; CO2 emissions; Transit (search for similar items in EconPapers)
JEL-codes: C21 C52 C54 C63 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10109-023-00413-0

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