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Digital Monitoring Technology and Air Quality: Evidence from the People’s Republic of China

Author

Listed:
  • Liang , Pinghan

    (Sun Yat-sen University)

  • Lou , Yadi

    (Sun Yat-sen University)

  • Tian , Shu

    (Asian Development Bank)

Abstract

Since the early 21st century, air quality concerns in the People’s Republic of China (PRC) have garnered significant attention from both the public authorities and society. This study investigates the effects of digital environmental monitoring technology on air pollution. Specifically, we explore the data from government procurement of digital environmental monitoring technologies over the 2014–2019 period. The baseline results indicate that on average, each additional environmental contract per 100,000 residents signed by governments is associated with an 8-percentage point reduction in city PM2.5 levels. This effect arises from more accurate pollutant identification, which strengthens enforcement of environmental regulations, facilitating any necessary transition and, where applicable, orderly exit of heavily polluting enterprises, and fosters green innovation. Further, this effect exhibits regional variation in the extent of environmental concern and the level of information disclosure. The results suggest that technology-driven environmental governance, supported by public engagement and policy frameworks, plays a crucial role in enhancing air quality in the PRC.

Suggested Citation

  • Liang , Pinghan & Lou , Yadi & Tian , Shu, 2025. "Digital Monitoring Technology and Air Quality: Evidence from the People’s Republic of China," ADB Economics Working Paper Series 788, Asian Development Bank.
  • Handle: RePEc:ris:adbewp:0788
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    More about this item

    Keywords

    digital environmental monitoring; PM2.5; public monitoring; information disclosure;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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