Does the increase of public transit fares deteriorate air quality in Beijing? |
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| Institution: | 1. School of Finance, Southwestern University of Finance and Economics, Chengdu, Sichuan, China;2. College of Management, Sichuan Agricultural University, Chengdu, Sichuan, China;1. Department of Civil & Environmental Engineering, The University of Tennessee, United States;2. Department of Civil and Environmental Engineering & Senior Fellow, Howard H. Baker, Jr. Center for Public Policy, The University of Tennessee, United States;3. Travel Demand Modeler, Virginia Department of Transportation (VDOT), United States;1. Department of Business Administration, Providence University, 200, Chung-Chi, Rd., Shalu, Taichung 433, Taiwan;2. Department of Economics and Josef Korbel School of International Studies, University of Denver, 2201 South Gaylord Street, Denver, CO 80208, USA;3. Department of Transportation and Logistics Management, National Chiao Tung University., 114, 4F, Sec. 1, Chung Hsiao W. Rd., Taipei 100, Taiwan;4. Department of Statistics, Feng Chia University, 100 Wenhua Road, Taichung, Taiwan |
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| Abstract: | Since 2006, Beijing lowered its public transit fares as a way to improve air quality. However, Beijing increased public transportation fare prices from December 28, 2014, and commuters pay for the distance they traveled rather than a flat fare. This paper explores the effect of Beijing public transit fares increase on air quality. We collect daily data of air pollution and weather variables and use synthetic control method of Abadie and Gardeazabal (2003) to select control units. We then estimate a difference-in-differences model and assess the effect of the policy on air quality index (AQI). We find a 16.28% increase in air pollution in short run. However, we find no longer-run effect on air quality. |
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| Keywords: | Beijing public transit Fare increase Air pollution Transit subsidies L62 Q53 Q58 R48 |
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