The Effect of Air Pollution on Criminal Activities: Evidence from the NOx Budget Trading Program

49 Pages Posted: 22 Sep 2017

See all articles by Teng Li

Teng Li

Sun Yat-sen University

Date Written: September 21, 2017

Abstract

This paper examines the impacts of air pollution on criminal activities by exploiting three dimensions of variations in a rich quasi-experiment: the NOx Budget Trading Program. This program has been well documented to decrease NOx emissions and ozone concentrations in participating states. Employing a triple-difference estimator, we find robust evidence that the cap-and-trade market statistically significantly reduced violent crimes in participating states, whereas property crimes were less affected. Instrumental variable estimates suggest that lowering pollution emissions may play an important role in reducing violent criminal behaviors.

Keywords: Air pollution, criminal activities, NOx Budget Trading Program

JEL Classification: K42, Q51, Q58

Suggested Citation

Li, Teng, The Effect of Air Pollution on Criminal Activities: Evidence from the NOx Budget Trading Program (September 21, 2017). Available at SSRN: https://ssrn.com/abstract=3039207 or http://dx.doi.org/10.2139/ssrn.3039207

Teng Li (Contact Author)

Sun Yat-sen University ( email )

135, Xingang Xi Road
Guangzhou, Guangdong 510275
China

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