Abstract

http://ssrn.com/abstract=1917110
 


 



The Effect of Beijing’s Driving Restrictions on Pollution and Economic Activity


V. Brian Viard


Cheung Kong Graduate School of Business

Shihe Fu


Southwestern University of Finance and Economics - Research Institute of Economics and Management

November 18, 2014


Abstract:     
We evaluate the pollution and labor supply reductions from Beijing’s driving restrictions. Causal effects are identified from both time-series and spatial variation in air quality and intra-day variation in television viewership. Based on daily data from multiple monitoring stations, air pollution falls 22% during every-other-day and 15% during one-day-per-week restrictions. Based on hourly television viewership data, viewership during the restrictions increases by 9 to 17% for workers with discretionary work time but is unaffected for workers without, consistent with the restrictions’ higher per-day commute costs reducing daily labor supply. We provide possible reasons for the policy’s success, including evidence of high compliance based on parking garage entrance records.

Number of Pages in PDF File: 65

Keywords: driving restrictions, externalities, environmental economics, air pollution, commute costs

JEL Classification: H23, D62, L51, J22, R41

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Date posted: August 27, 2011 ; Last revised: December 3, 2014

Suggested Citation

Viard, V. Brian and Fu, Shihe, The Effect of Beijing’s Driving Restrictions on Pollution and Economic Activity (November 18, 2014). Available at SSRN: http://ssrn.com/abstract=1917110 or http://dx.doi.org/10.2139/ssrn.1917110

Contact Information

V. Brian Viard (Contact Author)
Cheung Kong Graduate School of Business ( email )
Oriental Plaza, Tower E3
One East Chang An Avenue
Beijing, 100738
China
86-10-8518-8858 (Phone)
86-10-8518-6800 (Fax)
HOME PAGE: http://english.ckgsb.edu.cn/faculty_content/brian-viard
Shihe Fu
Southwestern University of Finance and Economics - Research Institute of Economics and Management ( email )
Chengdu, 610074, Sichuan 610074
China
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