The Equity Impacts of Los Angeles' Air Quality Policies

Abstract

This research questions whether the imposition of federal clean-air standards in the Los Angeles metropolitan region will improve income equality. In the paper an attempt is made to measure the gains (health benefits, capitalized home price increases, visibility benefits) and losses [unemployment risks, price increases (including rents), and tax impacts] to mean-income households across communities and to households of different income groups within the communities for which sufficiently disaggregated data are available. The net welfare gains are substantial for households living in low-income (typically polluted) cities and for the less well-off households living in most cities. Thus the Los Angeles case generates substantial pro-poor benefits from air quality improvement. This finding could be an important ingredient in public discussions to strengthen community support for the Clean Air Act.