AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Do Earmarks Target Low-Income and Minority Communities? Evidence from US Drinking Water
AEA Papers and Proceedings
vol. 114,
May 2024
(pp. 36–40)
Abstract
The quality and inequality of US drinking water investments have gained attention after recent environmental disasters in Flint, Michigan, and elsewhere. We compare the targeting of subsidized loans provided through the Safe Drinking Water Act with the targeting of congressional drinking water earmarks ("pork barrel" spending). Earmarks are critiqued for potentially privileging wealthier and politically connected communities. We find that earmarks target Black, Hispanic, and low-income communities, partly due to targeting water systems serving large populations. Earmark and loan targeting differ across all demographics we analyze. Compared to loans, earmarks disproportionately target Hispanic but not Black or low-income communities.Citation
Keiser, David A., Bhashkar Mazumder, David Molitor, Joseph S. Shapiro, and Brant J. Walker. 2024. "Do Earmarks Target Low-Income and Minority Communities? Evidence from US Drinking Water." AEA Papers and Proceedings, 114: 36–40. DOI: 10.1257/pandp.20241009Additional Materials
JEL Classification
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- L95 Gas Utilities; Pipelines; Water Utilities
- L98 Industry Studies: Utilities and Transportation: Government Policy
- Q25 Renewable Resources and Conservation: Water
- Q28 Renewable Resources and Conservation: Government Policy