Adaptation to Environmental Change: Agriculture and the Unexpected Incidence of the Acid Rain Program
- (pp. 373-401)
Abstract
The Acid Rain Program (ARP) cut sulfur dioxide (SO2) emissions from power plants in the United States, with considerable benefits. We show this also reduced ambient sulfate levels, which lowered agriculture productivity through decreased soil sulfur. Using plant-level SO2 emissions and an atmospheric transport model, we estimate the relationship between airborne sulfate levels and yields for corn and soybeans. We estimate crop revenue losses for these two crops at around $1–$1.5 billion per year, with accompanying decreases in land value. Back-of-the-envelope calculations of the costs to replace lost sulfur suggest producer responses were limited and suboptimal.Citation
Sanders, Nicholas J., and Alan I. Barreca. 2022. "Adaptation to Environmental Change: Agriculture and the Unexpected Incidence of the Acid Rain Program." American Economic Journal: Economic Policy, 14 (1): 373-401. DOI: 10.1257/pol.20190060Additional Materials
JEL Classification
- Q15 Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q24 Renewable Resources and Conservation: Land
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q58 Environmental Economics: Government Policy
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