From Fog to Smog: The Value of Pollution Information
American Economic Review
vol. 114,
no. 5, May 2024
(pp. 1338-81)
Abstract
In 2013, China launched a landmark program to monitor air quality and disclose real-time data, significantly increasing the public's access to and awareness of pollution information. The program triggered cascading behavioral changes such as stronger avoidance of outdoor pollution exposure and increased spending on protective products. These behavioral responses mitigated the mortality impact of air pollution. Conservative estimates indicate that the program's health benefits outweigh the costs by an order of magnitude. The findings highlight the benefits of improving public access to pollution information in developing countries which often experience severe air pollution but lack pollution data collection and dissemination.Citation
Barwick, Panle Jia, Shanjun Li, Liguo Lin, and Eric Yongchen Zou. 2024. "From Fog to Smog: The Value of Pollution Information." American Economic Review, 114 (5): 1338-81. DOI: 10.1257/aer.20200956Additional Materials
JEL Classification
- D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- I12 Health Behavior
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- P28 Socialist Systems and Transitional Economies: Natural Resources; Energy; Environment
- Q51 Valuation of Environmental Effects
- Q53 Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling