The distributional effects of pollution regulations: Do renters fully pay for cleaner air?

► I study the housing market effects of the 1990 Clean Air Act Amendments. ► Rents are less responsive to changes in pollution than owner-occupied housing values. ► This holds when stratifying by income, suggesting the “pass-through” may be incomplete. ► This has implications for the distributional effects of pollution regulations. ► Results are robust to alternative specifications and levels of spatial aggregation.