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The effect of air pollution on criminal activities: Evidence from the NOx Budget Trading Program

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  • Chen, Siyu
  • Li, Teng

Abstract

This paper examines the impacts of air pollution on criminal activities by exploiting three dimensions of variations observed under 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 evidence showing that the program significantly reduced violent and property crimes in participating states by roughly 3.7% and 2.9%, respectively. Instrumental variable estimates suggest that lowering air pollution may play an important role in reducing criminal behaviors.

Suggested Citation

  • Chen, Siyu & Li, Teng, 2020. "The effect of air pollution on criminal activities: Evidence from the NOx Budget Trading Program," Regional Science and Urban Economics, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:regeco:v:83:y:2020:i:c:s0166046219301279
    DOI: 10.1016/j.regsciurbeco.2020.103528
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    Cited by:

    1. Mao, Jie & Wang, Chunhua & Yin, Haitao, 2023. "Corporate responses to air quality regulation: Evidence from a regional environmental policy in China," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    2. Sefa Awaworyi Churchill & Russell Smyth & Trong‐Anh Trinh, 2023. "Crime, Weather and Climate Change in Australia," The Economic Record, The Economic Society of Australia, vol. 99(324), pages 84-107, March.
    3. Marcantonio, Richard A., 2022. "Toxic diplomacy through environmental management: A necessary next step for environmental peacebuilding," World Development Perspectives, Elsevier, vol. 28(C).
    4. Jeongin Eum & Hyungkyoo Kim, 2021. "Effects of Air Pollution on Assaults: Findings from South Korea," Sustainability, MDPI, vol. 13(20), pages 1-13, October.
    5. Wu, Haitao & Xia, Yufeng & Yang, Xiaodong & Hao, Yu & Ren, Siyu, 2021. "Does environmental pollution promote China's crime rate? A new perspective through government official corruption," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 292-307.
    6. Xinming Du, 2023. "Symptom or Culprit? Social Media, Air Pollution, and Violence," CESifo Working Paper Series 10296, CESifo.

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    More about this item

    Keywords

    Air pollution; Criminal activities; NOx Budget Trading Program;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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