Polluting Public Funds: The Effect of Environmental Regulations on Municipal Bonds

This paper has benefited greatly from feedback provided by Pat Akey, Dave Evans, Caroline Flammer, Ludovica Gazze, Harrison Hong, Ivan Ivanov, Brian Kovak, Monica Reid, Edson Severnini, Lowell Taylor, and Qifei Zhu, as well as seminar participants at the U.S. Environmental Protection Agency, the 2019 Annual Meeting of the Urban Economics Association, the 2020 Annual Conference for the Association of Environmental and Resource Economists, Carnegie Mellon’s Heinz Informal Lunch Seminar, the Technology, Sustainability, and Business Forum at Carnegie Mellon, the University of Texas, and the UN PRI Academic Network Conference 2022. Any remaining errors are our own. The views expressed in this paper are the authors’ and do not represent the views of the Office of the Comptroller of the Currency (OCC), the Department of the Treasury, or the U.S. Government. This paper has not been reviewed by the OCC.