Cleaner Waters and Urbanization

24 Pages Posted: 27 Dec 2022

See all articles by Qianping Ren

Qianping Ren

University of California, Santa Cruz - Department of Economics

Jeremy West

University of California, Santa Cruz - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: December 16, 2022

Abstract

The Clean Water Act (CWA) addresses nonpoint source pollution primarily by funding public works projects. Our study evaluates changes in rural watersheds before and after CWA projects are implemented, compared to watersheds without funding. We find that projects significantly reduce water pollution, with corresponding increases in human population and residential construction. Using housing values, we estimate that economic benefits exceed government costs by at least fourfold. Over half of this benefit is attributable to new housing. Our findings show that pollution can impede urbanization, suggesting more broadly that residential development is an important mechanism of revealed preference for environmental quality.

Keywords: water pollution, public works, rural development, environmental valuation

JEL Classification: H41, O44, Q53, Q56, R23

Suggested Citation

Ren, Qianping and West, Jeremy, Cleaner Waters and Urbanization (December 16, 2022). Available at SSRN: https://ssrn.com/abstract=4305399 or http://dx.doi.org/10.2139/ssrn.4305399

Qianping Ren

University of California, Santa Cruz - Department of Economics ( email )

Jeremy West (Contact Author)

University of California, Santa Cruz - Department of Economics ( email )

Santa Cruz, CA 95064
United States

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