Vehicles have recently overtaken coal to become the largest source of air pollution in urban China. Research on mobile sources of pollution has foundered due both to inaccessibility of Chinese data on health outcomes and strong identifying assumptions. To address these, we collect daily ambulance call data from the Beijing Emergency Medical Center and combine them with an idiosyncratic feature of a driving restriction policy in Beijing that references the last digit of vehicles’ license plate numbers. Because the number 4 is considered unlucky by many in China, it tends to be avoided on license plates. As a result, days on which the policy restricts license plates ending in 4 unintentionally allow more vehicles in Beijing. Leveraging this variation, we find that traffic congestion is indeed 22% higher on days banning 4 and that 24-hour average concentration of NO2 is 12% higher. Correspondingly, these short term increases in pollution increase ambulance calls by 12% and 3% for fever and heart related symptoms, while no effects are found for injuries. These findings suggest that traffic congestion has substantial health externalities in China but that they are also responsive to policy.
Understanding the rapidly rising demand for energy in China is essential to efforts to reduce the country's energy use and environmental damage. In response to rising incomes and changing prices and demographics, household use of various fuels, electricity and gasoline has changed dramatically in China. In this paper, we estimate both income and price elasticities for various energy types using Chinese urban household micro-data collected by National bureau of Statistics, by applying a two-stage budgeting AIDS model. We find that total energy is price and income inelastic for all income groups after accounting for demographic and regional effects. Our estimated electricity price elasticity ranges from - 0.49 to -0.57, gas price elasticity ranges from -0.46 to -0.94, and gasoline price elasticity ranges from -0.85 to -0.94. Income elasticity for various energy types range from 0.57 to 0.94. Demand for coal is most price and income elastic among the poor, whereas gasoline demand is elastic for the rich.
China is now the largest emitter of CO2 in the world, having contributed nearly half of the global increase in carbon emissions between 1980 and 2010. The existing literature on China’s carbon emissions has focused on two dimensions: the amount of CO2 emitted within China’s geographical boundaries (a production-based perspective), and the drivers of, and responsibility for, these emissions (a consumption-based perspective). The current study begins with a comprehensive review of China’s CO2 emissions, and then analyzes their driving forces from both consumption and production perspectives, at both national and provincial levels. It is concluded that China’s aggregate national CO2 emissions from fossil fuel consumption and cement production maintained high growth rates during 2000-2010. National emissions reached 6.8–7.3 billion tons in 2007, nearly 25% of which were caused by net exports (i.e., exports minus imports) to other countries. However, emission characteristics varied significantly among different regions and provinces, and considerable emission leakage from the developed eastern regions to inland and western areas of the country was found. The objectives of China’s policies should therefore be broadened from continued improvement of energy efficiency to accelerating regional technology transfer and preventing mere relocation of carbon-intensive economic activities from developed coastal regions to less developed, inland provinces. To rapidly and effectively cut down China’s carbon emissions, moreover, its energy supply should be aggressively decarbonized by promoting renewable and low carbon energy sources.