The impact of economic and financial activities on air quality: a Chinese city perspective

Canh, Nguyen Phuc; Hao, Wei; Wongchoti, Udomsak

doi:10.1007/s11356-020-11227-8

Research Article
Published: 16 October 2020

The impact of economic and financial activities on air quality: a Chinese city perspective

Environmental Science and Pollution Research volume 28, pages 8662–8680 (2021)Cite this article

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Abstract

This study examines the impact of economic and financial activities on air pollution in China using prefecture-level panel data from 2004 to 2015. Recruiting the air quality index (AQI) as a measure of overall air quality in Chinese cities, we find that industrial production, financial development, and economic integration lead to higher overall air pollution. Nevertheless, efficiency in urban planning through public transportation and population density alleviates this environmental degradation. A closer look into the two main air pollutants in China, sulphur dioxide and dust, further highlights the complexity of the issue. We find that trade openness reduces both sulphur dioxide and dust emissions, whereas financial development reduces sulphur dioxide emissions but increases dust in Chinese cities. Our findings are of particular interest to policymakers when devising environmental policies in support of sustainable economic development.

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Data availability

The datasets used and/or analysed during the current study are available from the corresponding author on reasonable request.

Notes

This model is developed based on the (popular) IPAT (Influence, Population, Affluence, and Technology) model of Ehrlich and Holdren (1971)
A few studies use prefecture-level data, see Lee and Oh (2015), Lin (2017), Chen et al. (2017).
It is widely accepted as the main cause of global warming and climate change.
It is the index of air quality (higher value means lower quality of air). That is, this value cannot be transformed to measure the air quality per capita.
See Table 6, Appendix, for the list of cities.
Equal to 1 if the year is in the period 2011–2015, otherwise equal to 0.
In China’s 13th Five-Year Plan covering the period 2016–2020, dust emission (PM2.5), for the first time, is being added in the control list as a main pollutant.
We thank our anonymous referee for this point.

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School of Banking, University of Economics Ho Chi Minh City, 59C Nguyen Dinh Chieu, District 3, Ho Chi Minh City, 700000, Vietnam
Nguyen Phuc Canh
School of Economics and Finance, Massey University, Wellington, New Zealand
Wei Hao
School of Economics and Finance, Massey University, Palmerston North, New Zealand
Udomsak Wongchoti

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Nguyen Phuc Canh: conceptualization, methodology, software, validation, formal analysis, writing - original draft preparation, writing - reviewing and editing.

Wei Hao: data curation, validation, writing - original draft preparation, writing - reviewing and editing.

Udomsak Wongchoti: writing - original draft preparation, writing - reviewing and editing.

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Appendix

Table 6 List of cities

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Table 7 Summary of recent literature on air pollution (2011–2019)

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Table 8 Summary of recent literature on the air pollution in China (2017–2019)

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Canh, N.P., Hao, W. & Wongchoti, U. The impact of economic and financial activities on air quality: a Chinese city perspective. Environ Sci Pollut Res 28, 8662–8680 (2021). https://doi.org/10.1007/s11356-020-11227-8

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Received: 17 June 2020
Accepted: 11 October 2020
Published: 16 October 2020
Issue Date: February 2021
DOI: https://doi.org/10.1007/s11356-020-11227-8

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Air pollution
City
China
Industrial development
Economic integration

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