The Effect of Air Pollution on Criminal Activities: Evidence from the NO x Budget Trading Program
53 Pages Posted: 31 Jul 2018 Last revised: 24 Dec 2019
Date Written: May 16, 2018
This paper examines the impacts of air pollution on criminal activities by exploiting three dimensions of variations in a rich quasi-experiment: the NOx Budget Trading Program. This program has been well documented to decrease air pollution concentrations in participating states. Employing a triple-difference estimator, we ﬁnd robust evidence that the cap-and-trade market statistically signiﬁcantly reduced violent and property crimes in participating states by about 3.7% and 2.9%, respectively. Instrumental variable estimates suggest that lowering air pollution may play an important role in reducing criminal behaviors.
Keywords: Air pollution, criminal activities, NOx Budget Trading Program
JEL Classification: K42, Q51, Q58
Suggested Citation: Suggested Citation