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Adaptation to Environmental Change: Agriculture and the Unexpected Incidence of the Acid Rain Program†

Adaptation to Environmental Change: Agriculture and the Unexpected Incidence of the Acid Rain... AbstractThe Acid Rain Program (ARP) cut sulfur dioxide (SO2) emissions from power plants in the United States, with considerable benefits. We show this also reduced ambient sulfate levels, which lowered agriculture productivity through decreased soil sulfur. Using plant-level SO2 emissions and an atmospheric transport model, we estimate the relationship between airborne sulfate levels and yields for corn and soybeans. We estimate crop revenue losses for these two crops at around $1–$1.5 billion per year, with accompanying decreases in land value. Back-of-the-envelope calculations of the costs to replace lost sulfur suggest producer responses were limited and suboptimal. (JEL Q15, Q24, Q53, Q58) http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Economic Journal: Economic Policy American Economic Association

Adaptation to Environmental Change: Agriculture and the Unexpected Incidence of the Acid Rain Program†

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Adaptation to Environmental Change: Agriculture and the Unexpected Incidence of the Acid Rain Program†

Sanders, Nicholas J.; Barreca, Alan I.
American Economic Journal: Economic Policy , Volume 14 (1) – Feb 1, 2022

Abstract

AbstractThe Acid Rain Program (ARP) cut sulfur dioxide (SO2) emissions from power plants in the United States, with considerable benefits. We show this also reduced ambient sulfate levels, which lowered agriculture productivity through decreased soil sulfur. Using plant-level SO2 emissions and an atmospheric transport model, we estimate the relationship between airborne sulfate levels and yields for corn and soybeans. We estimate crop revenue losses for these two crops at around $1–$1.5 billion per year, with accompanying decreases in land value. Back-of-the-envelope calculations of the costs to replace lost sulfur suggest producer responses were limited and suboptimal. (JEL Q15, Q24, Q53, Q58)

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Publisher
American Economic Association
Copyright
Copyright © 2022 © American Economic Association
ISSN
1945-7731
DOI
10.1257/pol.20190060
Publisher site
See Article on Publisher Site

Abstract

AbstractThe Acid Rain Program (ARP) cut sulfur dioxide (SO2) emissions from power plants in the United States, with considerable benefits. We show this also reduced ambient sulfate levels, which lowered agriculture productivity through decreased soil sulfur. Using plant-level SO2 emissions and an atmospheric transport model, we estimate the relationship between airborne sulfate levels and yields for corn and soybeans. We estimate crop revenue losses for these two crops at around $1–$1.5 billion per year, with accompanying decreases in land value. Back-of-the-envelope calculations of the costs to replace lost sulfur suggest producer responses were limited and suboptimal. (JEL Q15, Q24, Q53, Q58)

Journal

American Economic Journal: Economic Policy – American Economic Association

Published: Feb 1, 2022

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