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The effect of Beijing’s driving restrictions on pollution and economic activity

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  • Viard, Brian
  • Fu, Shihe
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Abstract

We evaluate the environmental and economic effects of Beijing’s driving restrictions. Based on daily data from multiple monitoring stations, air pollution falls 19% during every-other-day and 8% during one-day-per-week restrictions. Based on hourly viewership data, the number of television viewers during the restrictions increases 1.7 to 2.3% for workers with discretionary work time but is unaffected for workers without, consistent with the restrictions’ higher per-day commute costs reducing daily labor. Causal effects are identified from both time-series and spatial variation in air quality and intra-day variation in viewership. We provide possible reasons for the policy’s success, including evidence of high compliance based on parking garage entrance records. Our results contrast with previous findings of no pollution reductions from driving restrictions and provide new evidence on commute costs and labor supply.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33009.

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Date of creation: 25 Aug 2011
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Handle: RePEc:pra:mprapa:33009

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Keywords: Driving restrictions; externalities; environmental economics; pollution;

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  1. Richard Arnott & Marvin Kraus, 2003. "Transport Economics," Boston College Working Papers in Economics, Boston College Department of Economics 553, Boston College Department of Economics.
  2. Eskeland, Gunnar S & Feyzioglu, Tarhan, 1997. "Rationing Can Backfire: The "Day without a Car" in Mexico City," World Bank Economic Review, World Bank Group, World Bank Group, vol. 11(3), pages 383-408, September.
  3. Christian Salas, 2010. "Evaluating Public Policies with High Frequency Data: Evidence for Driving Restrictions in Mexico City Revisited," Documentos de Trabajo, Instituto de Economia. Pontificia Universidad Católica de Chile. 374, Instituto de Economia. Pontificia Universidad Católica de Chile..
  4. Eva Gutierrez-i-Puigarnau & Jos van Ommeren, 2009. "Labour Supply and Commuting: Implications for Optimal Road Taxes," Tinbergen Institute Discussion Papers 09-008/3, Tinbergen Institute.
  5. Gutiérrez-i-Puigarnau, Eva & van Ommeren, Jos N., 2010. "Labour supply and commuting," Journal of Urban Economics, Elsevier, vol. 68(1), pages 82-89, July.
  6. Richard Arnott & Tilmann Rave & Ronnie Schöb, 2005. "Alleviating Urban Traffic Congestion," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262012197, December.
  7. Yuyu Chen & Ginger Zhe Jin & Naresh Kumar & Guang Shi, 2011. "The Promise of Beijing: Evaluating the Impact of the 2008 Olympic Games on Air Quality," NBER Working Papers 16907, National Bureau of Economic Research, Inc.
  8. Maureen L. Cropper & Yi Jiang & Anna Alberini & Patrick Baur, 2010. "Getting Cars Off the Road: The Cost-Effectiveness of an Episodic Pollution Control Program," Working Papers, Fondazione Eni Enrico Mattei 2010.46, Fondazione Eni Enrico Mattei.
  9. Kenneth Y. Chay & Michael Greenstone, 1999. "The Impact of Air Pollution on Infant Mortality: Evidence from Geographic Variation in Pollution Shocks Induced by a Recession," NBER Working Papers 7442, National Bureau of Economic Research, Inc.
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  11. Lucas W. Davis, 2008. "The Effect of Driving Restrictions on Air Quality in Mexico City," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 116(1), pages 38-81, 02.
  12. Richard Arnott, 2007. "Congestion Tolling with Agglomeration Externalities," Boston College Working Papers in Economics, Boston College Department of Economics 660, Boston College Department of Economics.
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Cited by:
  1. Shum, Matthew & Sun, Wei & Ye, Guangliang, 2014. "Superstition and “lucky” apartments: Evidence from transaction-level data," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 109-117.
  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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