David Keiser, Joseph S. Shapiro, 24 October 2018

Many argue that the $1 trillion cost of the 1972 US Clean Water Act outweigh its benefits. The column uses new evidence on grants and water pollution readings to measure its impact. While the Act has decreased US water pollution, the estimated change in home values caused by this has been only one quarter of the grant costs, although this probably understates the full impact of the Act. The analysis suggests that targeting water pollution in more populous areas would improve net social benefits.

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