Panle Jia Barwick, Shanjun Li, Liguo Lin, Eric Zou, 12 February 2020

During 2013–2014, China launched a nationwide, real-time air quality monitoring and disclosure programme which substantially expanded public access to pollution information. This column analyses the impact of the programme and finds that it triggered a cascade of changes in household behaviour, prompting people to find out more online about pollution-related topics, adjust their day-to-day consumption to avoid exposure to pollution, and exhibit a higher willingness to pay for housing in less-polluted areas. The programme’s estimated annual health benefits far outweigh the combined costs of the programme and associated pollution-avoidance behaviours.

Matthew Kahn, Cong Sun, Siqi Zheng, 08 July 2015

China’s cities suffer from extremely high levels of air pollution, and Chinese consumers spend more than $US100 million on anti-smog products per year. Using recent internet sales data, this column explores how investing in such self-protection products varies for consumers with different income brackets. The urban poor are shown to be less likely to engage in this health-improving strategy. This suggests that cross-sectional income comparisons understate lifetime inequality.

Events

CEPR Policy Research