Working Paper: NBER ID: w30830
Authors: Seonmin Will Heo; Koichiro Ito; Rao Kotamarthi
Abstract: We study the international spillover effects of air pollution by developing a framework that integrates recent advances in atmospheric science into econometric estimation with microdata on mortality and health. Combining transboundary particle trajectory data with the universe of individual-level mortality and emergency room visit data in South Korea, we find that transboundary air pollution from China significantly increases mortality and morbidity in South Korea. Using these estimates, we show that a recent Chinese environmental policy “war on pollution” generated a substantial international spillover benefit. Finally, we examine China’s strategic pollution reductions and provide their implications for the potential Coasian bargaining.
Keywords: Air Pollution; International Spillover Effects; Mortality; Health Data
JEL Codes: Q53
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| reduction in PM2.5 due to China's environmental policies (F64) | international spillover benefits for South Korea (F59) |
| transboundary PM2.5 from China (F64) | PM2.5 levels in South Korea (Q53) |
| PM2.5 levels in South Korea (Q53) | mortality and morbidity rates in South Korea (I12) |
| transboundary PM2.5 from China (F64) | mortality and morbidity rates in South Korea (I12) |
| PM2.5 exposure (I14) | hourly mortality in South Korea (I12) |