Lasting Effects of Acid Rain in the US: A Spatio-Temporal Analysis (2008 - 2020)

Abstract

The Acid Rain Program (1990) was the first successful implementation of a cap and trade policy to stave off sulfur dioxide and nitrogen oxides, the main precursors of acid rain. While air pollution was collectively understood as a negative externality since the early 1960s, it required a market-oriented solution to reduce emissions to acceptable levels. While emission rates have fallen to record levels since 1990, the lasting impacts of acid rain are often unexplored. While the emission problem has been contained, acid deposition is a negative externality because it adversely affects the economy, the environment, and our health. This paper investigates the impacts of acid rain deposition on wealth inequality in the United States. A hedonic pricing model is used to determine the effects of emission levels on real estate prices and analyze the effects of sulfur dioxide and nitrogen oxide emissions across the four US census regions from 2008 to 2020. A negative effect of air pollution on real estate prices was found in the Northeastern region of the United States.