What Makes the Level of Particulate Matter Emissions Worse in Korea?

This study empirically examines the effects of economic activities on air pollution, especially particulate matter 2.5 (PM2.5) and particulate matter 10 (PM10). Using monthly regional panel data, we explain which socioeconomic activities worsen air pollution levels. Our results show that some economic activities, such as manufacturing of chemical products and chemicals, and diesel consumption increase both PM10 and PM2.5 emission levels. As diesel consumption increases, PM10 emission level increases according to the GLS (generalized least squares) estimations. In addition, as the manufacturing of coke, briquettes, and petroleum products increases, the PM2.5 emission level increases. As the manufacturing of chemical products and chemicals increases, both PM10 and PM2.5 emission levels increase in neighboring regions using SDM(b). Diesel consumption has also a positive effect on the increase in the PM2.5 emission level in neighboring regions using SDM(a). As the number of precipitation days increases, both PM10 and PM2.5 emission levels decrease according to the GLS estimates, SDM(b). We forecast that both PM10 and PM2.5 levels will continue to rise if people continue to engage in certain socioeconomic activities, such as chemicals, coke, briquettes, petroleum products manufacturing, and diesel consumption. However, serious levels of pollution may not necessarily arise in the future, as using new and renewable energy lowers the levels of both PM10 and PM2.5 according to the SDM(a) and (b). These findings help to explain future air quality level forecasts using monthly regional data with spatial dependence.