These estimates are even less positive than the estimates for housing. Online Appendix FigureVI shows national trends in federal versus state and local spending on wastewater treatment capital over 19601983.21 State and local spending on wastewater treatment capital declined steadily from a total of |${\$}$|43 billion in 1963 to |${\$}$|22 billion in 1971 and then to |${\$}$|7 billion annually by the late 1970s. This article is published and distributed under the terms of the Oxford University Press, Standard Journals Publication Model (. Notes. We also report unweighted estimates. We also discuss trends in three other groups of water quality measures: industrial pollutants, nutrients, and general measures of water quality (Online Appendix TableIV).18 All three industrial pollutants have declined rapidly. They then use the regression estimates from column (4) of TableV to calculate the ratio of the change in the value of housing and grant costs, separately by decile. TableV analyzes how Clean Water Act grants affect housing. A review of 10 U.S. studies found pass-through estimates between 0.25 and 1.06 (Hines and Thaler 1995). We find that by most measures, U.S. water pollution has declined since 1972, though some evidence suggests it may have declined at a faster rate before 1972. Log specifications would implicitly assume that the percentage change in a rivers pollution due to a grant is the same for a river with a high background concentration, which is unlikely. In 2020 the EPA narrowed the definition of 'Waters of the United States', significantly limiting wetland protection under the Clean Water Act. Online Appendix E.3 discusses interpretations of our housing estimates under alternative pass-through numbers. Although a point estimate of 0.41 for the ratio of benefits to costs does not exceed 1, one should interpret this value in light of the discussion from the next subsection that it may be a lower bound on true benefits. Each observation in a regression is a plant-downstream-year tuple. Q_{pdy}=\gamma G_{py}d_{d}+X_{pdy}^{^{\,\,\prime }}\beta +\eta _{pd}+\eta _{py}+\eta _{dwy}+\epsilon _{pdy}. Hines (1967) describes state and local control of water pollution in the 1960s, which typically included legislation designating regulated waters and water quality standards, a state pollution control board, and enforcement powers against polluters including fines and incarceration. The negatives is it is not strongly enforced, violators only pay a small fine, countries can exempt themselves from certain species. The largest ratios of estimated benefits to costs are for areas where outdoor fishing or swimming is common (ratio of 0.53), for high-amenity urban areas (ratio of 0.40), and in the South (ratio of 0.84). Market-Based Emissions Regulation When Damages Vary Across Sources: What Are the Gains from Differentiation? Water quality improvement and resilient infrastructure Not less than $650 million (increased by $100 million over 2020 proposal) wastewater infrastructure projects municipal stormwater projects Municipal grants for stormwater with green infrastructure Agricultural nutrient pollution Harmful Algal Bloom abatement Panel C estimates the effect of grants on log housing units and Panel D on the log of the total value of the housing stock. This assumption could also fail if changes in governments effectiveness at receiving grants are correlated with governments effectiveness at operating treatment plants. Some studies in historic or developing country settings, where drinking water regulation is limited, relate surface water quality to health (Ebenstein 2012; Greenstone and Hanna 2014; Alsan and Goldin forthcoming). Brackets show 95% confidence intervals. Ignoring such a large source of pollution can make aggregate abatement more costly. Fourth, this analysis abstracts from general equilibrium changes. First is the choice of policy instrument. The bid function is the consumers indifference curve in the trade-off between the price of a home and the amount of attribute j embodied in the home. Official websites use .gov Considering all owner-occupied homes within 25 miles of the river, the estimated ratio of the grants aggregate effects on home values to the grants costs is 0.26. Panel A reports estimates of how grants affect log mean home values. Imperfect Risk Sharing and the Business Cycle, Cultural Distance and Conflict-Related Sexual Violence, The Other Great Migration: Southern Whites and the New Right, |$\left(\approx \frac{33.7}{1.4}\right)$|, |$P_{z_{j}}\equiv \frac{\partial P}{\partial z_{j}}$|, Browse content in A - General Economics and Teaching, A11 - Role of Economics; Role of Economists; Market for Economists, B - History of Economic Thought, Methodology, and Heterodox Approaches, Browse content in B - History of Economic Thought, Methodology, and Heterodox Approaches, Browse content in B4 - Economic Methodology, C - Mathematical and Quantitative Methods, Browse content in C - Mathematical and Quantitative Methods, C1 - Econometric and Statistical Methods and Methodology: General, Browse content in C1 - Econometric and Statistical Methods and Methodology: General, C14 - Semiparametric and Nonparametric Methods: General, C2 - Single Equation Models; Single Variables, Browse content in C2 - Single Equation Models; Single Variables, C21 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions, C23 - Panel Data Models; Spatio-temporal Models, C26 - Instrumental Variables (IV) Estimation, C3 - Multiple or Simultaneous Equation Models; Multiple Variables, Browse content in C3 - Multiple or Simultaneous Equation Models; Multiple Variables, C31 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models, C32 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models, C35 - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions, C4 - Econometric and Statistical Methods: Special Topics, Browse content in C4 - Econometric and Statistical Methods: Special Topics, Browse content in C5 - Econometric Modeling, C52 - Model Evaluation, Validation, and Selection, C55 - Large Data Sets: Modeling and Analysis, C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling, Browse content in C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling, C63 - Computational Techniques; Simulation Modeling, Browse content in C7 - Game Theory and Bargaining Theory, C73 - Stochastic and Dynamic Games; Evolutionary Games; Repeated Games, C8 - Data Collection and Data Estimation Methodology; Computer Programs, Browse content in C8 - Data Collection and Data Estimation Methodology; Computer Programs, Browse content in C9 - Design of Experiments, D01 - Microeconomic Behavior: Underlying Principles, D02 - Institutions: Design, Formation, Operations, and Impact, D03 - Behavioral Microeconomics: Underlying Principles, D04 - Microeconomic Policy: Formulation; Implementation, and Evaluation, D1 - Household Behavior and Family Economics, Browse content in D1 - Household Behavior and Family Economics, D12 - Consumer Economics: Empirical Analysis, D13 - Household Production and Intrahousehold Allocation, Browse content in D2 - Production and Organizations, D23 - Organizational Behavior; Transaction Costs; Property Rights, D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity, D31 - Personal Income, Wealth, and Their Distributions, D4 - Market Structure, Pricing, and Design, Browse content in D4 - Market Structure, Pricing, and Design, D43 - Oligopoly and Other Forms of Market Imperfection, D5 - General Equilibrium and Disequilibrium, Browse content in D5 - General Equilibrium and Disequilibrium, D61 - Allocative Efficiency; Cost-Benefit Analysis, D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement, D7 - Analysis of Collective Decision-Making, Browse content in D7 - Analysis of Collective Decision-Making, D71 - Social Choice; Clubs; Committees; Associations, D72 - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior, D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption, D74 - Conflict; Conflict Resolution; Alliances; Revolutions, D78 - Positive Analysis of Policy Formulation and Implementation, D8 - Information, Knowledge, and Uncertainty, Browse content in D8 - Information, Knowledge, and Uncertainty, D81 - Criteria for Decision-Making under Risk and Uncertainty, D82 - Asymmetric and Private Information; Mechanism Design, D83 - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness, D85 - Network Formation and Analysis: Theory, Browse content in D9 - Micro-Based Behavioral Economics, D91 - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making, D92 - Intertemporal Firm Choice, Investment, Capacity, and Financing, E - Macroeconomics and Monetary Economics, Browse content in E - Macroeconomics and Monetary Economics, E01 - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts, Browse content in E1 - General Aggregative Models, E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy, Browse content in E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy, E22 - Investment; Capital; Intangible Capital; Capacity, E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity, E25 - Aggregate Factor Income Distribution, E3 - Prices, Business Fluctuations, and Cycles, Browse content in E3 - Prices, Business Fluctuations, and Cycles, E37 - Forecasting and Simulation: Models and Applications, Browse content in E4 - Money and Interest Rates, E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems, E43 - Interest Rates: Determination, Term Structure, and Effects, E44 - Financial Markets and the Macroeconomy, E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit, Browse content in E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit, E51 - Money Supply; Credit; Money Multipliers, E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook, Browse content in E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook, Browse content in E7 - Macro-Based Behavioral Economics, E71 - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy, Browse content in F - International Economics, F12 - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation, F13 - Trade Policy; International Trade Organizations, F16 - Trade and Labor Market Interactions, F2 - International Factor Movements and International Business, Browse content in F2 - International Factor Movements and International Business, F21 - International Investment; Long-Term Capital Movements, F23 - Multinational Firms; International Business, Browse content in F3 - International Finance, F32 - Current Account Adjustment; Short-Term Capital Movements, F34 - International Lending and Debt Problems, F36 - Financial Aspects of Economic Integration, F4 - Macroeconomic Aspects of International Trade and Finance, Browse content in F4 - Macroeconomic Aspects of International Trade and Finance, F42 - International Policy Coordination and Transmission, F5 - International Relations, National Security, and International Political Economy, Browse content in F5 - International Relations, National Security, and International Political Economy, F51 - International Conflicts; Negotiations; Sanctions, F52 - National Security; Economic Nationalism, F55 - International Institutional Arrangements, Browse content in F6 - Economic Impacts of Globalization, Browse content in G - Financial Economics, G02 - Behavioral Finance: Underlying Principles, Browse content in G1 - General Financial Markets, G11 - Portfolio Choice; Investment Decisions, G12 - Asset Pricing; Trading volume; Bond Interest Rates, G14 - Information and Market Efficiency; Event Studies; Insider Trading, Browse content in G2 - Financial Institutions and Services, G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages, G22 - Insurance; Insurance Companies; Actuarial Studies, G23 - Non-bank Financial Institutions; Financial Instruments; Institutional Investors, G24 - Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies, Browse content in G3 - Corporate Finance and Governance, G31 - Capital Budgeting; Fixed Investment and Inventory Studies; Capacity, G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill, G34 - Mergers; Acquisitions; Restructuring; Corporate Governance, Browse content in G4 - Behavioral Finance, G41 - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets, G51 - Household Saving, Borrowing, Debt, and Wealth, Browse content in H1 - Structure and Scope of Government, H11 - Structure, Scope, and Performance of Government, Browse content in H2 - Taxation, Subsidies, and Revenue, H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies, H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes, H3 - Fiscal Policies and Behavior of Economic Agents, Browse content in H3 - Fiscal Policies and Behavior of Economic Agents, Browse content in H4 - Publicly Provided Goods, H44 - Publicly Provided Goods: Mixed Markets, H5 - National Government Expenditures and Related Policies, Browse content in H5 - National Government Expenditures and Related Policies, H52 - Government Expenditures and Education, H53 - Government Expenditures and Welfare Programs, H54 - Infrastructures; Other Public Investment and Capital Stock, H55 - Social Security and Public Pensions, Browse content in H6 - National Budget, Deficit, and Debt, H63 - Debt; Debt Management; Sovereign Debt, H7 - State and Local Government; Intergovernmental Relations, Browse content in H7 - State and Local Government; Intergovernmental Relations, H71 - State and Local Taxation, Subsidies, and Revenue, H73 - Interjurisdictional Differentials and Their Effects, H75 - State and Local Government: Health; Education; Welfare; Public Pensions, H76 - State and Local Government: Other Expenditure Categories, H77 - Intergovernmental Relations; Federalism; Secession, Browse content in H8 - Miscellaneous Issues, H83 - Public Administration; Public Sector Accounting and Audits, H87 - International Fiscal Issues; International Public Goods, Browse content in I - Health, Education, and Welfare, I13 - Health Insurance, Public and Private, I18 - Government Policy; Regulation; Public Health, Browse content in I2 - Education and Research Institutions, I23 - Higher Education; Research Institutions, Browse content in I3 - Welfare, Well-Being, and Poverty, I32 - Measurement and Analysis of Poverty, I38 - Government Policy; Provision and Effects of Welfare Programs, Browse content in J - Labor and Demographic Economics, Browse content in J1 - Demographic Economics, J12 - Marriage; Marital Dissolution; Family Structure; Domestic Abuse, J13 - Fertility; Family Planning; Child Care; Children; Youth, J14 - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination, J15 - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination, J16 - Economics of Gender; Non-labor Discrimination, Browse content in J2 - Demand and Supply of Labor, J21 - Labor Force and Employment, Size, and Structure, J24 - Human Capital; Skills; Occupational Choice; Labor Productivity, J3 - Wages, Compensation, and Labor Costs, Browse content in J3 - Wages, Compensation, and Labor Costs, J31 - Wage Level and Structure; Wage Differentials, J33 - Compensation Packages; Payment Methods, Browse content in J4 - Particular Labor Markets, J44 - Professional Labor Markets; Occupational Licensing, J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining, Browse content in J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining, J51 - Trade Unions: Objectives, Structure, and Effects, J53 - Labor-Management Relations; Industrial Jurisprudence, J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers, Browse content in J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers, J61 - Geographic Labor Mobility; Immigrant Workers, J62 - Job, Occupational, and Intergenerational Mobility, J64 - Unemployment: Models, Duration, Incidence, and Job Search, J65 - Unemployment Insurance; Severance Pay; Plant Closings, Browse content in J7 - Labor Discrimination, J8 - Labor Standards: National and International, Browse content in J8 - Labor Standards: National and International, Browse content in K1 - Basic Areas of Law, Browse content in K3 - Other Substantive Areas of Law, K4 - Legal Procedure, the Legal System, and Illegal Behavior, Browse content in K4 - Legal Procedure, the Legal System, and Illegal Behavior, K42 - Illegal Behavior and the Enforcement of Law, Browse content in L - Industrial Organization, L1 - Market Structure, Firm Strategy, and Market Performance, Browse content in L1 - Market Structure, Firm Strategy, and Market Performance, L11 - Production, Pricing, and Market Structure; Size Distribution of Firms, L13 - Oligopoly and Other Imperfect Markets, L14 - Transactional Relationships; Contracts and Reputation; Networks, L15 - Information and Product Quality; Standardization and Compatibility, L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices, L2 - Firm Objectives, Organization, and Behavior, Browse content in L2 - Firm Objectives, Organization, and Behavior, L22 - Firm Organization and Market Structure, L24 - Contracting Out; Joint Ventures; Technology Licensing, L25 - Firm Performance: Size, Diversification, and Scope, L3 - Nonprofit Organizations and Public Enterprise, Browse content in L3 - Nonprofit Organizations and Public Enterprise, L33 - Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out, Browse content in L4 - Antitrust Issues and Policies, L41 - Monopolization; Horizontal Anticompetitive Practices, L42 - Vertical Restraints; Resale Price Maintenance; Quantity Discounts, Browse content in L5 - Regulation and Industrial Policy, Browse content in L6 - Industry Studies: Manufacturing, L62 - Automobiles; Other Transportation Equipment; Related Parts and Equipment, L63 - Microelectronics; Computers; Communications Equipment, L66 - Food; Beverages; Cosmetics; Tobacco; Wine and Spirits, L7 - Industry Studies: Primary Products and Construction, Browse content in L7 - Industry Studies: Primary Products and Construction, L71 - Mining, Extraction, and Refining: Hydrocarbon Fuels, Browse content in L8 - Industry Studies: Services, L81 - Retail and Wholesale Trade; e-Commerce, L83 - Sports; Gambling; Recreation; Tourism, L84 - Personal, Professional, and Business Services, L86 - Information and Internet Services; Computer Software, L9 - Industry Studies: Transportation and Utilities, Browse content in L9 - Industry Studies: Transportation and Utilities, M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics, Browse content in M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics, Browse content in M1 - Business Administration, M12 - Personnel Management; Executives; Executive Compensation, M14 - Corporate Culture; Social Responsibility, Browse content in M2 - Business Economics, Browse content in M3 - Marketing and Advertising, Browse content in M4 - Accounting and Auditing, Browse content in M5 - Personnel Economics, M51 - Firm Employment Decisions; Promotions, M52 - Compensation and Compensation Methods and Their Effects, N01 - Development of the Discipline: Historiographical; Sources and Methods, N1 - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations, Browse content in N1 - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations, N10 - General, International, or Comparative, Browse content in N2 - Financial Markets and Institutions, N20 - General, International, or Comparative, N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy, Browse content in N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy, N30 - General, International, or Comparative, N4 - Government, War, Law, International Relations, and Regulation, Browse content in N4 - Government, War, Law, International Relations, and Regulation, N40 - General, International, or Comparative, N5 - Agriculture, Natural Resources, Environment, and Extractive Industries, Browse content in N5 - Agriculture, Natural Resources, Environment, and Extractive Industries, N50 - General, International, or Comparative, Browse content in N6 - Manufacturing and Construction, N7 - Transport, Trade, Energy, Technology, and Other Services, Browse content in N7 - Transport, Trade, Energy, Technology, and Other Services, Browse content in N8 - Micro-Business History, Browse content in N9 - Regional and Urban History, O - Economic Development, Innovation, Technological Change, and Growth, Browse content in O - Economic Development, Innovation, Technological Change, and Growth, Browse content in O1 - Economic Development, O11 - Macroeconomic Analyses of Economic Development, O12 - Microeconomic Analyses of Economic Development, O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products, O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology, O15 - Human Resources; Human Development; Income Distribution; Migration, O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance, O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements, O18 - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure, O19 - International Linkages to Development; Role of International Organizations, Browse content in O2 - Development Planning and Policy, O23 - Fiscal and Monetary Policy in Development, O3 - Innovation; Research and Development; Technological Change; Intellectual Property Rights, Browse content in O3 - Innovation; Research and Development; Technological Change; Intellectual Property Rights, O31 - Innovation and Invention: Processes and Incentives, O32 - Management of Technological Innovation and R&D, O33 - Technological Change: Choices and Consequences; Diffusion Processes, O34 - Intellectual Property and Intellectual Capital, O4 - Economic Growth and Aggregate Productivity, Browse content in O4 - Economic Growth and Aggregate Productivity, O41 - One, Two, and Multisector Growth Models, O47 - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence, Browse content in O5 - Economywide Country Studies, Browse content in P1 - Capitalist Systems, P2 - Socialist Systems and Transitional Economies, Browse content in P2 - Socialist Systems and Transitional Economies, P3 - Socialist Institutions and Their Transitions, Browse content in P3 - Socialist Institutions and Their Transitions, P37 - Legal Institutions; Illegal Behavior, Browse content in P4 - Other Economic Systems, P48 - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies, Browse content in P5 - Comparative Economic Systems, P51 - Comparative Analysis of Economic Systems, Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics, Browse content in Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics, Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets, Q13 - Agricultural Markets and Marketing; Cooperatives; Agribusiness, Q15 - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment, Q16 - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services, Q2 - Renewable Resources and Conservation, Browse content in Q2 - Renewable Resources and Conservation, Q3 - Nonrenewable Resources and Conservation, Browse content in Q3 - Nonrenewable Resources and Conservation, Q32 - Exhaustible Resources and Economic Development, Q34 - Natural Resources and Domestic and International Conflicts, Browse content in Q5 - Environmental Economics, Q54 - Climate; Natural Disasters; Global Warming, Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth, R - Urban, Rural, Regional, Real Estate, and Transportation Economics, Browse content in R - Urban, Rural, Regional, Real Estate, and Transportation Economics, Browse content in R1 - General Regional Economics, R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes, R12 - Size and Spatial Distributions of Regional Economic Activity, R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies, Browse content in R2 - Household Analysis, R23 - Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics, R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location, Browse content in R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location, Browse content in R4 - Transportation Economics, R41 - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise, Browse content in Z - Other Special Topics, Z1 - Cultural Economics; Economic Sociology; Economic Anthropology, Browse content in Z1 - Cultural Economics; Economic Sociology; Economic Anthropology, Z13 - Economic Sociology; Economic Anthropology; Social and Economic Stratification, B - History of Economic Thought, Methodology, and Heterodox.