Environmental and Resource Economics

, Volume 69, Issue 3, pp 575–589 | Cite as

Benefit-Transfer and Spatial Equilibrium

  • Matthew A. TurnerEmail author


Compelling empirical evidence suggests that people move in response changes in pollution and that firms move in response to regulation. We investigate the problem of benefit estimation and transfer in the context of a simple model where firms and people can move in response to regulation and pollution. Including these margins of adjustment changes the problem of benefit-transfer. It requires the evaluation of policies that affect more than one region at a time. This suggests an important role for evaluation strategies based on easily observable indicators of local welfare like total population, real income net of real estate, or the use of elementary standardized models of spatial equilibrium.


Benefit-transfer Clean Air Act 

JEL Classification



  1. Albouy D, Graf W, Wolff H, Kellogg R (1982) Extreme temperature, climate change, and american quality of life. J Assoc Environ Resour Econ 3(1):205–246Google Scholar
  2. Becker R, Henderson V (2000) Effects of air quality regulations on polluting industries. J Polit Econ 108(2):379–421CrossRefGoogle Scholar
  3. Chay KY, Greenstone M (2005) Does air quality matter? Evidence from the housing market. J Polit Econ 113(2):376–424CrossRefGoogle Scholar
  4. Desmet K, Rossi-Hansberg E (2013) Urban accounting and welfare. Am Econ Rev 103(32):2296–2327CrossRefGoogle Scholar
  5. Diamond R (2016) The determinants and welfare implications of US workers’ diverging location choices by skill: 1980–2000. Am Econ Rev 106(3):479–524CrossRefGoogle Scholar
  6. Dornbush D, Abel F (1973) Benefit of water pollution on property values. EPA Technical paper 600/5-73-005Google Scholar
  7. Duranton G, Turner MA (2012) Urban growth and transportation. Rev Econ Stud 79(4):1407–1440CrossRefGoogle Scholar
  8. Fujita M, Ogawa H (1982) Multiple equilibria and structural transition of non-monocentric urban configurations. Reg Sci Urban Econ 12(2):161–196CrossRefGoogle Scholar
  9. Gollop FM, Roberts MJ (1983) Environmental regulations and productivity growth: the case of fossil-fueled electric power generation. J Polit Econ 91(4):654–674CrossRefGoogle Scholar
  10. Gonzalez-Navarro M, Turner MA (2016) Subways and urban growth: evidence from earth. Processed, Brown UniversityGoogle Scholar
  11. Greenstone M (2002) The impacts of environmental regulations on industrial activity: evidence from the 1970 and 1977 Clean Air Act amendments and the census of manufactures. J Polit Econ 110(6):1175–1219CrossRefGoogle Scholar
  12. Greenstone M (2003) Estimating regulation-induced substitution: the effect of the Clean Air Act on water and ground pollution. Am Econ Rev 93(3):442–448CrossRefGoogle Scholar
  13. Johnston RJ, Rolfe J, Rosenberger RS, Brouwer R (2015) Introduction to benefit transfer methods. In: Johnston RJ et al (eds) Benefit transfer of environmental and resource values. Springer, Dordrecht, pp 19–59CrossRefGoogle Scholar
  14. Keiser DA, Shapiro JS (2016) Consequences of the Clean Water Act and the demand for water quality. Processed, Yale UniversityGoogle Scholar
  15. Kuminoff NV (2012) Partial identification of preferences in a dual-market sorting equilibrium. Processed, University of ArizonaGoogle Scholar
  16. Kuminoff NV, Pope JC (2016) Do “capitalization effects” for public goods reveal the public’s willingness to pay? Processed, University of ArizonaGoogle Scholar
  17. Redding S (2016) Goods trade, factor mobility and welfare. J Int Econ 101:148–167CrossRefGoogle Scholar
  18. Roback J (1982) Wages, rents, and the quality of life. J Polit Econ 90(6):1257–1278CrossRefGoogle Scholar
  19. Ryan SP (2012) The costs of environmental regulation in a concentrated industry. Econometrica 80(3):1019–1061CrossRefGoogle Scholar
  20. Smith VK, Van Houtven G, Pattanayak SK (2002) Benefit transfer via preference calibration: “prudential algebra” for policy. Land Econ 78(1):132–152CrossRefGoogle Scholar
  21. Turner MA, Haughwout A, Van Der Klaauw W (2014) Land use regulation and welfare. Econometrica 82(4):1341–1403CrossRefGoogle Scholar
  22. Walker WR (2013) The transitional costs of sectoral reallocation: evidence from the Clean Air Act and the workforce. Q J Econ 128(4):1787–1835CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media B.V., part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of Economics, Box BBrown UniversityProvidenceUSA
  2. 2.NBERCambridgeUSA
  3. 3.University of TorontoTorontoCanada
  4. 4.International Growth CenterLondonUK
  5. 5.PERCBozemanUSA

Personalised recommendations