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The effects of fuel standards on air pollution: Evidence from China

Pei Li, Yi Lu () and Jin Wang

Journal of Development Economics, 2020, vol. 146, issue C

Abstract: This paper examines the causal relationship between China's fuel standards and air pollution using a difference-in-differences design and regression discontinuity analyses. Combining data on staggered prefectural implementation of the regulations with hourly station-level pollution data, we show that the enforcement of high-quality gasoline standards significantly improved air quality, especially in terms of fine particles and ozone. The average pollution across all pollutants was reduced by 12.9%. The new gasoline standard's net benefit is estimated to be about US$26 billion annually. These findings demonstrate the effectiveness of precise standards in reducing air pollution in a developing country setting.

Keywords: Fuel standards; Sulfur content; Vehicle emissions; Pollution; China (search for similar items in EconPapers)
JEL-codes: L51 Q53 Q58 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.jdeveco.2020.102488

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