Research

Abstract: National, state, and local governments have implemented various subsidy programs to promote electric vehicle (EV) adoption by reducing upfront costs for consumers. Standard economic theory suggests that the effectiveness of such subsidies should not depend on whether they target consumers or dealers. Since dealers are an important intermediary in most vehicle purchase decisions, with the capacity to nudge consumers towards EVs, subsidies targeting dealers could accelerate adoption. This paper tests that assumption using a unique EV rebate program in Connecticut (CHEAPR), which provides both consumer and dealer rebates. We exploit cross-sectional and temporal variation in rebate levels to estimate the effects of consumer and dealer subsidies on EV prices and adoption. Our results show that while 73% of consumer subsidies are passed through to buyers, dealer subsidies have no statistically significant effect on prices or adoption. Using a structural model of automobile demand and supply, we further analyze the optimal allocation of subsidies to maximize EV adoption under a fixed budget. Policy counterfactuals reveal that reallocating subsidies to the consumer side can increase adoption, and in particular, focusing on battery electric vehicles (BEVs) and price-sensitive models significantly boosts adoption and environmental benefits. Additionally, targeting consumer subsidies to low-income buyers or vehicles with high North American value-added can enhance equity or domestic growth while increasing EV adoption and environmental benefits.

Abstract: This paper estimates the short- and long-term effects of low-level lead exposure in early childhood, leveraging a natural experiment stemming from the sharp decline in piston-engine aircraft traffic—the largest source of airborne lead emissions—following the 9/11 attacks. Exploiting variation in lead exposure across schools, kindergarten cohorts, and wind patterns, we employ both difference-in-differences and instrumental variable approaches to estimate the causal effects of lead exposure on educational, behavioral, and labor market outcomes using longitudinal student-level data from Texas. Our findings reveal that one unit increase in lead exposure from kindergarten through third grade significantly reduces educational attainment, evidenced by lower test scores, decreased high school graduation rates, and reduced college enrollment. Additionally, lead exposure has marginally significant effects on increasing school absenteeism and the likelihood of expulsion. Finally, these adverse effects extend into adulthood, with lead exposure significantly reducing adult earnings.

Abstract: The two prominent safety rating agencies evaluate their frontal crash tests unconditional on vehicle weight. Their in-lab, controlled crashes largely resemble collisions between two equal-sized vehicles. However, it has been well-documented that a larger vehicle is objectively safer in a two-car collision, while imposing additional harm to drivers of smaller vehicles. This paper estimates the social benefits of a ratings regime which neglects the role of weight in its safety evaluations. We compare the current methodology to one incorporating relative weight by estimating the marginal effect of weight on vehicle fatalities and mapping those effects into a re-calibrated safety rating. For identification, we exploit underlying, in-lab crash metrics determining the rating to measure both the reduction in fatality risk, and to isolate a demand response to the rating. Counterfactual calculations demonstrate that incorporating the role of weight into safety ratings increase the demand for trucks and SUVs by 2.6%, potentially exacerbating an arms race in vehicle size.

Abstract: There has been a significant increase in renewable energy generation, such as wind energy, in the US over the last two decades. While wind energy positively affects the local economy, its sound annoyance has been linked to several health issues such as headache, dizziness, nausea, and even suicide, especially among those in the 15-19 age group. Since noise pollution from wind farms is a significant stressor, it can influence non-health outcomes. This paper studies the short-, medium-, and long-run effects of noise pollution on children’s non-health outcomes using the quasi-exogenous variation in the timing and location of over 150 wind farm installations (roughly 15,000 wind turbines) in Texas. Policymakers considering wind energy development as an essential part of the local economy should consider these unintended consequences on human capital formation to fully understand the social cost and benefit of this green energy.