We study the international spillover effects of air pollution by developing a framework that integrates recent advances in atmospheric science with econometric estimation and microdata on mortality and health. Combining transboundary particle trajectory data with the universe of individual-level mortality and emergency room visit data in South Korea, we find that transboundary air pollution from China significantly increases mortality and morbidity in South Korea. Using our estimates, we quantify that a recent Chinese environmental regulation “war on pollution” had a substantial international spillover benefit. Finally, we examine China’s strategic pollution reductions and provide its implications for the potential Coasian bargaining.
The decade from 2010 to 2019 marked a significant turning point in China’s history of environmental regulation and pollution. This article describes the recent trends in air and water quality, with a focus on the five years since China declared a “war on pollution” in 2014. It summarizes the emerging literature that has taken advantage of accompanying improvements in data availability and accuracy to document sharp improvements in environmental quality, especially local air pollution, and understand their social, economic, and health consequences.