Institute for Economic and Social Research

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Journal of Public Economics

2024-09-02


Disguised Pollution: Industrial Activities in the Dark

Sumit Agarwal, Yajie Han, Yu Qin, & Hongjia Zhu

 

Abstract

In this study we investigate disguised pollution by industrial firms in China. We find that sulfur dioxide (SO2) readings increase by 10.8% in air pollution monitoring stations four hours after sunset in high factory density areas, controlling for station-year, date, and city-hour fixed effects. Physical inspections by the Ministry of Environmental Protection may only temporarily reduce disguised pollution, suggesting that reliance on physical inspections to enforce regulations is ineffective if firms can shift production activities to non-daylight hours. We show that direct monitoring, as is done with some large polluters in China, can prevent this and should be cost-effective to extend to all industrial polluters.


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Copyright © 2019 Institute for Economic and Social Research ICP record No.: Yue ICP Bei No. 12087612