Natural Gas Transmission Project and Air Pollution in China

43 Pages Posted: 7 Apr 2021 Last revised: 26 Apr 2021

See all articles by Kaiyin Hu

Kaiyin Hu

University of New South Wales, Business School

Wenhao Wu

School of Entrepreneurship and Management, ShanghaiTech University

Date Written: April 2, 2021

Abstract

In this paper, we examine the effect of China's Natural Gas Transmission Project (NGTP) on air pollution. The NGTP is the pipeline network that connects to almost all provinces in China, providing clean energy for industry and households. We use satellite data to measure the country's air quality from 1999 to 2015 at the city level and manually collected information about when each city connected to a natural gas pipeline. We exploit variation in connection time, and use the predicted connection time of pipelines in each city as the instrument to address potential endogeneity concerns. We find that connecting to natural gas pipeline significantly reduces a city's air pollution by 8%.

Keywords: Natural Gas Transmission Project, Air Pollution, China

JEL Classification: O1, Q4, Q5

Suggested Citation

Hu, Kaiyin and Wu, Wenhao, Natural Gas Transmission Project and Air Pollution in China (April 2, 2021). ShanghaiTech SEM Working Paper No. 2021-002, UNSW Business School Research Paper Forthcoming, Available at SSRN: https://ssrn.com/abstract=3818854 or http://dx.doi.org/10.2139/ssrn.3818854

Kaiyin Hu

University of New South Wales, Business School ( email )

College Rd, Kensington NSW 2052
Sydney, New South Wales 2033
Australia
61-0450740622 (Phone)

Wenhao Wu (Contact Author)

School of Entrepreneurship and Management, ShanghaiTech University ( email )

393 Middle Huaxia Road, Pudong
Shanghai, 201210
China

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