The Effect of Air Pollution on Criminal Activities: Evidence from the NO x Budget Trading Program

53 Pages Posted: 31 Jul 2018 Last revised: 24 Dec 2019

See all articles by Siyu Chen

Siyu Chen

The Institute for Economic and Social Research, Jinan University

Teng Li

Sun Yat-sen University

Date Written: May 16, 2018

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 air pollution concentrations in participating states. Employing a triple-difference estimator, we find robust evidence that the cap-and-trade market statistically significantly reduced violent and property crimes in participating states by about 3.7% and 2.9%, respectively. Instrumental variable estimates suggest that lowering air pollution may play an important role in reducing criminal behaviors.

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

JEL Classification: K42, Q51, Q58

Suggested Citation

Chen, Siyu and Li, Teng, The Effect of Air Pollution on Criminal Activities: Evidence from the NO x Budget Trading Program (May 16, 2018). Available at SSRN: https://ssrn.com/abstract=3212525 or http://dx.doi.org/10.2139/ssrn.3212525

Siyu Chen

The Institute for Economic and Social Research, Jinan University ( email )

Guangzhou
Singapore

HOME PAGE: http://https://www.siyuchen.website/

Teng Li (Contact Author)

Sun Yat-sen University ( email )

135, Xingang Xi Road
Guangzhou, Guangdong 510275
China

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