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Environmental Protection or Environmental Protectionism? Evidence from Tail Pipe Emission Standards in China

Author

Listed:
  • Jie Bai
  • Shanjun Li
  • Danxia Xie
  • Hui Zhou

Abstract

Under the stated goal of improving air quality, many cities in China restricted the import of used vehicles from other cities based on tail pipe emission standards. Using detailed data on new and used vehicle registration, we examine the impact of the policy by leveraging the staggered removal of the restriction during 2016–2018. We find that restriction removal led to a sharp increase in cross-city flow of used vehicles but had no significant impact on local air quality. Unilateral removal of the restriction could reduce new vehicle sales in home cities, but universal removal would boost new vehicle sales nationwide.

Suggested Citation

  • Jie Bai & Shanjun Li & Danxia Xie & Hui Zhou, 2021. "Environmental Protection or Environmental Protectionism? Evidence from Tail Pipe Emission Standards in China," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 381-385, May.
    • Handle: RePEc:aea:apandp:v:111:y:2021:p:381-85
    DOI: 10.1257/pandp.20211033
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    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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