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New Evidence of the Effect of Beijing’s Driving Restriction and Other Olympic-Year Policies on Air Pollution

Author

Listed:
  • Liu Zheng

    (Institute of Quantitative and Technical Economics (IQTE), Chinese Academy of Social Sciences (CASS), Research Building 14th Floor, 5 Jianguomennei Street, Beijing, 100732, China)

  • Kong Haiyang

    (Business School, Beijing Normal University, No. 19 Xinjiekouwai Street, Beijing, 100875, China)

Abstract

Seven Chinese cities have enacted One-Weekday Limit (OWL) driving restrictions following Beijing’s implementation shortly after the Olympics in 2008. Existing literature examines the short-run effect of the OWL or the long-run effect of the Olympic-year policy package on air pollution in Beijing. Using two difference-in-differences (DD) approaches, this study compares the long-run effect of the Olympic-year policy package with the effect of the OWL. Using the city of Tianjin as a control, this study finds a significant drop in pollution due to the Olympic-year policy package. Using weekends as a control, this study finds a much smaller and less significant drop due to the OWL. These new findings suggest that compared to the OWL, other policies enforced in the Olympic year account for a greater portion of the drop.

Suggested Citation

  • Liu Zheng & Kong Haiyang, 2021. "New Evidence of the Effect of Beijing’s Driving Restriction and Other Olympic-Year Policies on Air Pollution," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(1), pages 241-272, January.
    • Handle: RePEc:bpj:bejeap:v:21:y:2021:i:1:p:241-272:n:12
    DOI: 10.1515/bejeap-2019-0295
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    References listed on IDEAS

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    1. Lucas W. Davis, 2008. "The Effect of Driving Restrictions on Air Quality in Mexico City," Journal of Political Economy, University of Chicago Press, vol. 116(1), pages 38-81, February.
    2. Chen, Yuyu & Jin, Ginger Zhe & Kumar, Naresh & Shi, Guang, 2013. "The promise of Beijing: Evaluating the impact of the 2008 Olympic Games on air quality," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 424-443.
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    4. Quah, Euston & Boon, Tay Liam, 2003. "The economic cost of particulate air pollution on health in Singapore," Journal of Asian Economics, Elsevier, vol. 14(1), pages 73-90, February.
    5. John Madden & Matthew Crowe, 1998. "Estimating the economic impact of the Sydney Olympic Games," ERSA conference papers ersa98p498, European Regional Science Association.
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