The Unintended Benefits of the Conservation Reserve Program for Air Quality

Abstract

The link between agriculture and air pollution is well-established, as are the benefits of the US Department of Agriculture's Conservation Reserve Program (CRP). However, little research has linked CRP to air quality directly. This study aims to address this gap by modeling the relationship between CRP and fine particulate matter (PM2.5) concentrations at the county level from 2001 to 2016. Several econometric models are estimated with panel data while controlling for drought, population, and wildfire. Results show that CRP has a statistically significant negative effect on PM2.5 concentrations. Using estimates from this model, we project an avoided 1,353 deaths, 1,687 deaths, and 3,022 deaths nationally in 2008 relative to three different counterfactual scenarios: all CRP acreage placed under cultivation, increased drought, and a combination of the first two. The value of the avoided mortality is estimated to be $9.5 billion, $11.8 billion, and $21.2 billion, respectively. These findings provide evidence that CRP may generate economic gains in terms of avoided mortality, well above the cost of the program.