The Effects of Fuel Standards on Air Pollution: Evidence from China

2021-06-10 Publications

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.

Jin Wang
Associate Professor, Division of Social Science
Jin Wang is an associate professor of Social Science at the Hong Kong University of Science and…
Pei Li
Zhejiang University
Yi Lu
Tsinghua University

Subscribe for latest content

Be the first to get our newsletter and updates in your inbox.