Distributional Effects of Air Pollution from Electric Vehicle Adoption

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We examine distributional effects of changes in local air pollution from driving electric vehicles in the United States. An econometric model estimates power plant emissions and an integrated assessment model values damages in air pollution from electric and gasoline vehicles. Using data on currently registered electric vehicles, we find that people in census block groups with median income greater than about $65,000 receive positive environmental benefits while those below this threshold receive negative environmental benefits. On average, Asian and Hispanic residents receive positive environmental benefits, but white and black residents receive negative environmental benefits. In multivariate analyses with census region fixed effects, environmental benefits are positively correlated with income and urban measures and with Asian, black, and Hispanic block-group population shares. Created environmental benefits tend to be larger in states offering purchase subsidies. However, for these states, an increase in subsidy size is associated with a decrease in environmental benefits.