Is US air pollution regulation too lenient? 🏭💸 We find marginal benefits of pollution control exceed marginal costs by >10×. New evidence from dozens of US pollution offset markets. 📄forthcoming at AER , w/ Reed Walker 1/🧵

Approach: 🔍 We use prices from air pollution offset markets to estimate marginal costs of pollution control. Each pollutant × region has own market. 100s of separate markets, distinct from cap-and-trade 🗺️📊 Paper: bit.ly/44ihQV6 Example offset: 2/

@_josephshapiro AER version abstract: "the marginal benefits of pollution abatement exceed the marginal costs by more than ten." Still time to switch it back to 'ten-fold'! aeaweb.org/articles?id=10…