The Clean Air Act covers essentially all major polluting sectors. The Office of Water (OW) ensures drinking water is safe, and restores and maintains oceans, watersheds, and their aquatic ecosystems to protect human health, support economic and recreational activities, and provide healthy habitat for fish, plants, and wildlife. Some of the pernicious substances that have been found in water supply systems across the United States include: Arsenic (declared safe for drinking water by the government at twice the levels recommended by private scientists) Uranium Mercury Lead Manganese Perchlorate - a rocket fuel additive Trichloroethylene - a degreaser used in manufacturing C1 - Econometric and Statistical Methods and Methodology: C3 - Multiple or Simultaneous Equation Models; Multiple, C4 - Econometric and Statistical Methods: Special, C6 - Mathematical Methods; Programming Models; Mathematical and Simulation, C8 - Data Collection and Data Estimation Methodology; Computer, E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal, E5 - Monetary Policy, Central Banking, and the Supply of Money and, E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General, F2 - International Factor Movements and International, F4 - Macroeconomic Aspects of International Trade and, F5 - International Relations, National Security, and International Political, H3 - Fiscal Policies and Behavior of Economic, H5 - National Government Expenditures and Related, H7 - State and Local Government; Intergovernmental, J5 - Labor-Management Relations, Trade Unions, and Collective, J6 - Mobility, Unemployment, Vacancies, and Immigrant, K4 - Legal Procedure, the Legal System, and Illegal, L1 - Market Structure, Firm Strategy, and Market, L7 - Industry Studies: Primary Products and, L9 - Industry Studies: Transportation and, M - Business Administration and Business Economics; Marketing; Accounting; Personnel. 1974 Report to the Congress. In this sense, the existence of the Clean Water Act did crowd out aggregate municipal investment in wastewater treatment. Because no reference category is required in this kind of event study setting, where one observation can receive multiple treatments, for ease of interpretation, we recenter the graph line so the coefficient for the year before treatment ( = 1) equals 0. Another test comes from the fact that the 19802000 gross rent data reported in the census include utilities costs. Column (1) reports a basic difference-in-differences regression with nominal dollars. Federal spending grew to between |${\$}$|10 and |${\$}$|20 billion a year in the late 1970s. The basis of the CWA was enacted in 1948 and was called the Federal Water Pollution Control Act, but the Act was significantly . Lack civil or criminal penalties for violations. We also report a range of sensitivity analyses, which are broadly in line with the main results. The positives of the Lacey Act it is one of . We use the following equation to assess year-by-year changes in water pollution: \begin{equation} We impute these values from a panel regression of log mean home values on year fixed effects and tract fixed effects. The 1972 U.S. Clean Water Act sought "to restore and maintain the chemical, physical, and biological integrity of the Nation's waters." This article quantifies changes in water pollution since before 1972, studies the causes of any changes, and analyzes the welfare consequences of any changes. Online Appendix B.3 describes the rule we use to choose indicators for this list; it mainly reflects the pollutants used in the USEPAs (1974) first major water pollution report after the Clean Water Act. Standard errors are clustered by watershed. A city may spend a grant in years after it is received, so real pass-through may be lower than nominal pass-through. The change in the value of housing is estimated by combining the regression estimates of TableV with the baseline value of housing and rents from the census. It is possible that areas with more pollution data may be of greater interest; for example, FigureI, Panel C shows more monitoring sites in more populated areas. Part I: State Pollution Control Programs, The Role of Water Quality Perceptions in Modelling Lake Recreation Demand, The International Handbook on Non-Market Environmental Valuation, The Displacement of Local Spending for Pollution Control by Federal Construction Grants, American Economic Review Papers and Proceedings, Water Pollution Progress at Borders: The Role of Changes in Chinas Political Promotion Incentives, American Economic Journal: Economic Policy, The Missing Benefits of Clean Water and the Role of Mismeasured Pollution Data, The Low but Uncertain Measured Benefits of US Water Quality Policy, Proceedings of the National Academy of Sciences, Replication Data for Consequences of the Clean Water Act and the Demand for Water Quality, Evaluating Public Programs with Close Substitutes: The Case of Head Start. Graphs show year fixed effects plus a constant from regressions that also control for monitoring site fixed effects, a day-of-year cubic polynomial, and an hour-of-day cubic polynomial, corresponding to equation (1) from the text. WHAT'S AT STAKE? Open Document. Our topic is clean water and sanitation. Online Appendix FigureV shows the effect of a grant by distance downstream from a treatment plant; few data are available to estimate effects separately for each five-mile bin along the river, and estimates are correspondingly less precise. The top decile of counties includes ratios between 0.31 and 0.41. Public outcry over dirty rivers spurred Congress to pass the landmark Clean Water Act in 1972. A second general equilibrium channel is that the hedonic price function may have shifted. This implies that pollution levels in upstream and downstream waters had similar trends before grants were received. One general conclusion from this literature is that the effect of federal grants on local government expenditure substantially exceeds the effect of local income changes on local government expenditure (the latter is typically around 0.10). Propensity score for appearing in the balanced panel of cities is estimated as a function of log city population, log city total municipal expenditure, city type (municipality or township), and census division fixed effects, where city population and expenditure are averaged over all years of the data. Year-by-year trends for the other pollutants in the main analysisthe share of waters that are not swimmable, BOD, fecal coliforms, and TSSshow similar patterns (Online Appendix FigureIII). The point estimate implies that each grant decreases TSS by 1%, though this is imprecise. Has Surface Water Quality Improved since the Clean Water Act? 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. We convert the data to calendar years using data from these surveys on the month when each governments fiscal year ends, assuming that government expenditure is evenly distributed across months. Paperless Cons. The positive coefficients in the richer specifications of columns (2) through (4) are consistent with increases in home values, though most are statistically insignificant. Data cover the years 19622001. \end{equation*}. The U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) final " Clean Water Rule " issued on Wednesday reduces the agencies' jurisdiction to protect waters that have been covered under the Clean Water Act (CWA) since the 1970s. The curve 1 describes the offer function of a firm, and 2 of another firm. Dollar values in |${\$}$|2014 millions. ) is that it reflects the equilibrium of firms that supply housing and consumers that demand housing. Fecal coliforms had the fastest rate of decrease, at 2.5% a year. Time of day controls are a cubic polynomial in hour of day. None of these subsets of grants considered has a ratio of measured benefits to costs above one, though many of the confidence regions cannot reject a ratio of 1. The inverse propensity score reweighted estimates are designed to reflect the entire population of U.S. cities. Dependent variable mean describes mean in 19621972. River miles * pct. Independent evidence is generally consistent with this idea. 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 Fecal coliforms are approximately log-normally distributed, and BOD and TSS are somewhat skewed (Online Appendix FigureI). The product is a tablet that turns any type of substance into clean substance. In Panel B, the year variables are recentered around 1972. 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). Please click here to see any active alerts. TableV analyzes how Clean Water Act grants affect housing. The clean water act is making sure every person has clean water to drink. 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