Fireworks regulation, air pollution, and public health: Evidence from China

Setting off fireworks is a time-honored practice in many countries, especially in festival months. Although the use of fireworks has been demonstrated to be one of the most important air pollution sources during festivals in many developing countries, the implementation of fireworks regulation is always controversial. We exploit staggered implementation of fireworks regulation in China and use a difference-in-difference framework to address the endogeneity. We have several findings: First, strict fireworks regulation reduces ambient PM2.5 concentration by 8% during festivals months. Second, the moderate fireworks regulation has an insignificant effect on air pollution. Third, we find that regulation significantly improves public health, with lower rates of respiratory/cardiovascular-related diseases. This paper provides new insights for policy makers to effectively improve air quality with relatively low financial cost.