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Pollution-induced trips: Evidence from flight and train bookings in China

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  • Dai, Ruochen
  • Guo, Dongmei
  • Han, Yajie
  • Qin, Yu

Abstract

Utilizing a novel database including nearly 2.2 billion booking records in China, we examine whether people escape from pollution by traveling to “cleaner” places. Combining an instrumental variable approach with high-dimensional fixed effects, we find a 50-unit increase in the AQI gap between a city pair leads to a 1.30% (1.33%) increase in train and airline ticket bookings from the origin to the destination city departing within one day (2–7 days). In addition, the destination of such pollution-induced trips is more likely to be an intra-province city with more tourist attractions. We also measure willingness to pay for clean air.

Suggested Citation

  • Dai, Ruochen & Guo, Dongmei & Han, Yajie & Qin, Yu, 2024. "Pollution-induced trips: Evidence from flight and train bookings in China," Journal of Development Economics, Elsevier, vol. 171(C).
    • Handle: RePEc:eee:deveco:v:171:y:2024:i:c:s0304387824000890
    DOI: 10.1016/j.jdeveco.2024.103340
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    More about this item

    Keywords

    Air pollution; Travel flow; Avoidance behavior;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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