Journal
JOURNAL OF DEVELOPMENT ECONOMICS
Volume 146, Issue -, Pages -Publisher
ELSEVIER
DOI: 10.1016/j.jdeveco.2020.102488
Keywords
Fuel standards; Sulfur content; Vehicle emissions; Pollution; China
Categories
Funding
- China's National Social Science Fund [18ZDA096]
- Hong Kong University of Science and Technology [SBI18HS06]
- China's National Natural Science Fund [71973078]
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This paper examines the causal relationship between China's fuel standards and air pollution using a difference-in-differences design and regression discontinuity analyses. Combining data on staggered prefectural implementation of the regulations with hourly station-level pollution data, we show that the enforcement of high-quality gasoline standards significantly improved air quality, especially in terms of fine particles and ozone. The average pollution across all pollutants was reduced by 12.9%. The new gasoline standard's net benefit is estimated to be about US$26 billion annually. These findings demonstrate the effectiveness of precise standards in reducing air pollution in a developing country setting.
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