Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Local air pollution: evidence, markets, and policy Location: Auditorium F Session Chair: Frank Pisch, Technical University of Darmstadt | |
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Trade and Pollution: Evidence from China’s World Market Integration 1: Georgia State University, United States of America; 2: City University of Hong Kong, Hong Kong S.A.R.; 3: Technische Universität Darmstadt, Germany Although the environmental impact of trade has been a long-standing concern, there is still only scant evidence on the channels through which international market access affects pollution. In this paper, we exploit the unique episode of China’s world market integration in the early 2000s to provide direct empirical evidence on three such mechanisms. We combine granular satellite data on air pollution with detailed information on manufacturing firms and coal power plants and leverage exogenous foreign demand shocks for identification. Three main findings emerge: exporting firms reduce local pollution (scope-1); pollution levels around coal power plants rise due to regional export shocks (scope-2); upstream suppliers reduce pollution in the face of export demand shocks to downstream firms (scope-3). Our findings point to China’s almost complete reliance on coal power plants to fuel its export-driven growth as the main driver of pollution increases. | |