Government Spending and Air Pollution in the US
نویسندگان
چکیده
This study examines the effect of the composition of federal and state government spending on various important air pollutants in the US using a newly assembled data set of government expenditures. The results indicate that a reallocation of spending from private goods (RME) to social and public goods (PME) by state and local governments reduces air pollution concentrations while the composition of federal spending has no effect. A 10 percent increase in the share of social and public goods spending by state and local governments reduces air pollution concentrations by 3 to 5 percent for Sulfur Dioxide, 2 to 3 percent for Particulate Matter 2.5 and 1 to 2 percent for Ozone. The results are robust to various sensitivity checks.
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