Disguised pollution: Industrial activities in the dark

Sumit Agarwal, Yajie Han, Yu Qin and Hongjia Zhu

Journal of Public Economics, 2023, vol. 223, issue C

Abstract: In this study we investigate disguised pollution by industrial firms in China. We find that sulfur dioxide (SO2) readings increase by 10.8% in air pollution monitoring stations four hours after sunset in high factory density areas, controlling for station-year, date, and city-hour fixed effects. Physical inspections by the Ministry of Environmental Protection may only temporarily reduce disguised pollution, suggesting that reliance on physical inspections to enforce regulations is ineffective if firms can shift production activities to non-daylight hours. We show that direct monitoring, as is done with some large polluters in China, can prevent this and should be cost-effective to extend to all industrial polluters.

Keywords: Air pollution; Disguised behavior; Industrial firm; Inspections; China (search for similar items in EconPapers)
JEL-codes: D22 I18 L51 Q53 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:223:y:2023:i:c:s0047272723000865

DOI: 10.1016/j.jpubeco.2023.104904

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