II. Institutional Background
SouthKorea has been infamous for its severe airpollution, the worst among the OECD countries. Although not as severe as that in metropolitan areas in developing countries such as Beijing and New Delhi, theairpollution levels in major cities ofSouthKorea exceed the level considered unsafe by World Health Organization (WHO, 2016). To address this serious problem, theSouth Korean Congress introduced theCleanAirAct in December 2003. Details, including the criteria for selecting target areas, were announced in June 2004 and became effective in January 2005. The CAA targeted high pollution areas in Seoul and its surroundings. Although it aimed to reduce overall levels ofair pollutants such as SO 2 (Sulfur Oxides), NO 2 (Nitrogen Oxides), VOC s (Volatile Organic
priced diesel cars meeting those standards.
2.2 The diesel emissions cheating scandal
In the mid-2000s, VW engineers began developing a new diesel engine (TDI Clean Diesel) de- signed to meet tightening U.S. emissions standards for passenger vehicles (Department of Justice, 2017). These new engines appeared to have all the benefits of diesel vehicles—strong perfor- mance and fuel efficiency—without the downside of high pollution. VW heavily advertised this new diesel line in national U.S. print, television advertisements (including the 2010 Super Bowl), and social media campaigns, promoting it to environmentally conscious consumers some of whom began buying diesel vehicles for the first time. TDI Clean Diesel models won the “Green Car ofthe Year” award both in 2009 and 2010, and VW quickly became the largest seller of light- duty diesel vehicles in the United States. Among advertised claims for the emissions system ofthe new clean diesel line were that it “reduces smog-causing nitrogen oxides by up to 90 percent when compared with past generations of diesel technologies sold in the United States,” and it has “fewer NO X emissions than comparable gasoline engines.” Advertisements began with headings
For instance, Currie and Neidell (2005) examine theimpactofairpollution (CO, O3, and Pm10 4 ) on low birth weight. 5 To address this, they used fixed effects models at the individual level, controlling for zip code-month fixed effects. To associate exposure to airpollution with low birth weight, they impute prenatal pollution exposure in each trimester using a radius of 10 kilometers (km) (6.2 miles) around the meter device. Results show no significant effect on low birth weight when the mother is exposed to airpollution during pregnancy. Similarly, using fixed effects at the individual level, Currie et al. (2009b) examine the effects ofpollution (CO, O3, and Pm10) on birth weight and prematurity. For birth weight, they utilize a panel with a pollution monitor and mother locations fixed effects, in which averages of exposure to pollution are imputed for the three trimesters of pregnancy. Results show that a one-unit increase in CO during the third trimester leads to an average birth weight reduction of 16.65 grams. Currie et al. (2009b) regress levels ofpollution during the three trimesters of pregnancy to different birth outcomes (including a model for child mortality). These authors use a rich set of controls as well as fixed effects for the closest airpollution monitor, an interaction between the monitor effect and each quarter ofthe year (to capture seasonal differences), and mother-specific fixed effects to control for time-invariant characteristics of neighborhoods and mothers. Results show that a one-unit increase in CO during the third trimester reduces birth weight on average by 16.65 grams (results were found at lower levels of CO). Currie and Walker (2011) exploit a policy that reduced traffic congestion in the U.S., in which electronic toll collector technology was implemented to look at the effects of traffic congestion on newborn health. This policy allowed them to implement a difference-in-differences design, in which the treatment group is made up of mothers living within two km of a toll plaza, while the control group is made up of those who live close to a highway, but between two km and 10 km of a toll plaza. Results suggest that implementing the E-ZPass 6 is associated with significant reductions in prematurity, by 8.6%, and in low birth weight, by 9.3%. Finally, Coneus and Spiess (2010) present a study using mother fixed effects and year/zip code effects together with an ample set
The impacts of car pollutionand their optimal regulation are the subject of an ongoing and con- tentious academic and policy debate, both in the United States and around the world. Yet, little empirical evidence exists onthe impacts of car exhaust onhealth outcomes. Although it is well established that airpollution has negative impacts on population health (Chay and Greenstone, 2003a,b; Currie and Neidell, 2005; Deryugina et al., 2019; Deschenes et al., 2017), the existing quasi-experimental evidence is largely based on measures of overall airpollution without identi- fying the contribution of car pollution. Two pioneering papers have studied thehealth impacts of car pollutionon mothers residing next to highway toll stations andon infants sick enough to die in response to weekly traffic variation (Currie and Walker, 2011; Knittel et al., 2016), but these estimates might not be generalizable. Whether moderate levels of car pollutionimpactthehealthofthe general population remains an open question. 1
Evidencefromthe Expansion of Natural Gas Infrastructure *
One ofthe consequences of rapid economic growth and industrialization in the developing world has been deterioration in environmental conditions andair quality. While airpollution is a serious threat to health in most developing countries, environmental regulations are rare andthe determination to address the problem is weak due to ongoing pressures to sustain robust economic growth. Under these constraints, natural gas, as a clean, abundant, and highly-efficient source of energy, has emerged as an increasingly attractive source of fuel, which could address some ofthe environmental andhealth challenges faced by these countries without undermining their economies. In this paper, we examine theimpactofairpollutiononinfant mortality in Turkey using variation across provinces and over time in the adoption of natural gas as a cleaner fuel. Our results indicate that the expansion of natural gas infrastructure has caused a significant decrease in the rate ofinfant mortality in Turkey. In particular, a one-percentage point increase in the rate of subscriptions to natural gas services would cause theinfant mortality rate to decline by 4 percent, which could result in 348 infant lives saved in 2011 alone. These results are robust to a large number of specifications. Finally, we use supplemental data on total particulate matter and sulfur dioxide to produce direct estimates ofthe effects of these pollutants oninfant mortality using natural gas expansion as an instrument. Our elasticity estimates fromthe instrumental variable analysis are 1.25 for particulate matter and 0.63 for sulfur dioxide.
23 In order to regard FDI as a tool to achieve Korea’s green growth strategy it seems to be important that mainly two criteria are fulfilled. First, FDI needs to support theclean-up of sectors by either changing the domestic industrial composition or by reducing the industrial emission intensities. Second, FDI needs to facilitate (long run) economic growth. While the analysis reveals that FDI increases the share of industrial value added in the total economy, this paper, limited by its regional nature, cannot exhaustively evaluate whether FDI results in a transformation ofthe domestic industrial composition. In other words, FDI does not induce a deindustrialization, i.e. a shift ofthe value added from manufacturing to the cleaner service sectors, which is perhaps also not intended by this industrial green growth policy. Yet, sector-specific data would be required to provide certain evidence whether FDI supports the value creation in innovative, green technology industrial sectors more than in energy- intensive industries. Given that foreign investments are associated with higher incomes in Korea, however, the results provide an indication that FDI is invested in sectors where high skilled labor is demanded – a corresponding precondition to move towards an innovative creative economy. Nevertheless, the paper reveals that FDI inflows concurrently stimulate economic growth and reduce airpollution intensities, while the total level ofairpollution mostly remains unchanged. Even though it may be regarded a minor limitation that FDI enhances theclean-up of sectors predominantly through indirect channels and less directly through the adoption of environmentally friendly technologies, these findings provide sufficient support for the fulfillment of both criteria. Given Korea’s high level of development, foreign investments are, therefore, regarded as one potential pillar to achieve the goals ofthe green growth strategy. From a policy perspective, the findings suggest that Korean officials should encourage FDI inflows through instruments that include region- specific incentives.
2017). As for the biological mechanisms, firstly, former findings indicated that the brain is a critical target for PM 2.5 exposure. Smaller particles may penetrate the
brain’s blood barrier and thus affect the central nervous system. It has been indicated that air pollutants may lead to biological changes in the brain, such as change in brain activity(Xu et al., 2016b), diminishing white matter or neuronal degeneration(Gladka et al., 2018). A cohort study found that late-life exposure to ambient particulate air pollutants has a deleterious effect on brain aging and brain volumes(Chen et al., 2015). Secondly, studies have also suggested that the development of MDs is dependent onthe interaction between genetic and environmental factors, which may be mediated by the activation ofthe immune system, oxidative stress and inflammation(Block and Calderon-Garciduenas, 2009).The results from a natural experiment showed that the over secretion of glucocorticoid activated immunity and inflammation in excess after PM 2.5 exposure
is least costly, not necessarily to facilities causing the most geographic-specific damage. Northeastern states worried that the ability to buy allowances in lieu of installing SO 2 controls might leave upwind sources
too much latitude to avoid making the actual emissions reductions needed to address downwind impacts. New York and North Carolina, among other eastern states, implemented their own regulations to direct abatement to where it would produce the most benefits for their residents. New York, in particular, conducted a lengthy legal campaign to maintain its more stringent standards (Palmer, Burtraw, and Shih 2005; Stavins 2003, 28–29; Winebrake, Farrell, and Bernstein 1995, 244–246). These actions highlight something of a tension between geographically broad-based, cap-and-trade approaches and state and local authorities’ desires to limit emissions within a particular area or from a particular set of sources. As sug- gested in the discussion of regulatory complexity above, extending the allowance-trading program over the largest geographically-relevant area and minimizing (or eliminating) overlapping regulatory requirements was key to realizing its potential to be cost-effective. Onthe other hand, any source that might be com- pelled by state or local regulations to implement extra pollution controls would end up with extra allow- ances under the federal program that could then be sold to other sources in a different jurisdiction. 42 The
that ethnic groups in the Netherlands are more likely to work in manual occupations, which have been shown to increase the risk of exposure to Covid-19 due to the greater frequency
of face-to-face contact amongst workers (Lewandowski, 2020). 14 Second, ethnic minorities
may be more likely to experience social deprivation, live in smaller housing and belong to larger households. As will be discussed below, we try to control for each of these factors by taking housing and household size conditions into account. Other risk factors may include the use of certain cultural practices (e.g., attending places of worship) or having a disposition for underlying health conditions. To control for any such effects we include the number of non-western migrants as a share ofthe population. Non-western migrants in the Netherlands are defined as the number of immigrants who are born in Africa, Latin America, Asia (excluding Japan and Indonesia), and Turkey.
Mental disorder is one ofthe three leading causes of Disabled Adjusted Life Years (DALYs) among non-communicable diseases, and it has been estimated that there are 162 million DALYs due to MDs in the world in 2015(Kassebaum et al., 2016). And MDs is a particularly challenging group of conditions with heavy disease burden in all geographies(Kassebaum et al., 2016). The global cost of mental health conditions in 2010 was estimated at $2.5 trillion, and it will reach $6.0 trillion by 2030(World Economic Forum, 2011). In China, the total annual costs of MDs increased from $21.0 billion in 2005 to $88.8 billion in 2013, the later accounted for 15% ofthe total health expenditure and 1.1% of China’s gross domestic product in 2013(Xu et al., 2016a). A variety of factors, such as genetic profiles, brain damage, substance abuse, socioeconomic status, and life conditions, may influence mental status. Recent studies have indicated a role of environmental factors, especially particulate matters, in the morbidity of MDs(Lin et al., 2017). Historically, extensive environmental and epidemiological studies around the world showed that PM 2.5 is a ubiquitous
The atmospheric concentration of ozone shows a large variability in many parts ofthe atmosphere. To better understand the driving parameters for this variability and to be able to attribute variability and changes to natural climate variability and anthropogenic changes a multi-decadal simulation (1960 to 2000) has been performed, employing realistic natural forcings, like El Nino, QBO, volcanoes, solar cycle. Additionally, diagnostic tools have been applied to attribute ozone changes and variations to specific NO x /ozone sources and to relate ozone concentrations to the regions, where this ozone is
in the future, there is evidencefromthe medical literature which suggests that airpollution exposure may alter the relative perceived costs of punishment by raising the effective discount rate (β) applied to the future prospect of punishment. Acute exposure to elevated levels ofairpollution has been linked to heightened concentration of stress hormones. In a rare experimental study, Li et al. (2017) provide evidence that acute exposure to elevated levels of PM2.5 29 leads to significant increases in cortisol (hydrocortisone), cortisone, epinephrine, and norepinephrine. Changes in blood levels of stress hormones are in turn expected to result in behavioural change. More specifically, heightened concentrations of stress hormones, especially cortisol, have been shown to alter time-preferences. In a controlled experiment, Riis- Vestergaard et al. (2018) find that subjects that were administered cortisol 15 minutes before the experimental task exhibited a strongly increased preference for small immediate rewards relative to larger but delayed rewards. The same was found in studies that randomly assigned physical stress rather than administering stress hormones. Again, individuals subject to physical stress (or pain) exhibited greater impatience than relevant control groups (Delaney et al., 2014; Koppel et al., 2017). In sum, acute exposure to elevated levels ofairpollution (PM2.5) may temporarily increase the discount rate applied to intertemporal trade-offs via its effect on blood levels of stress hormones. Increased discounting lowers the cost associated with potential future punishment () " & ) and consequently results in an increase in criminal offences.
precisely the actual health costs associated with use ofthe particular stove. The meter installation and administrative costs of such a tax are, onthe other hand, substantial.
Thus regulators are faced with a dilemma. They must choose between, onthe one hand, second-best tax schemes that may generate reasonably efficient incentives, but with extra administrative costs and, onthe other hand, different types of bans that may be easy to implement, but may potentially impose substantially higher compliance costs on stove users. This makes empirical evaluation ofthe costs and benefits of different schemes the only way to ascertain whether regulation is warranted and which scheme maximizes net social benefits. We do this using an integrated modelling framework consisting ofthe EVA healthimpact assessment model system and an economic model of stove investment and use. In the next subsection, we describe the EVA model system that simulates how emissions within a specific geographical grid cell affect monetarized health costs in all grid cells ofthe model. In the following two subsections, we describe the economic model that simulates stove users’ reactions to regulation within each grid cell ofthe EVA model. .
The second challenge is the endogeneity ofpollution. A large share ofpollution is caused by business activity. As firms increase their production (where reliance on workers is a major means of achieving this), they emit more pollutants into the environment. This leads to “reverse causality,” where higher levels of productivity lead to higher levels ofpollution. Another concern is that individuals may choose where to live (and work) in part based onthe level ofair quality in that location. When this is the case, it leads to a non- random assignment ofpollution, which may give rise to a spurious relationship between pollutionand productivity. For example, higher-paid individuals may choose to live in cleaner areas. These higher-paid individuals may have higher levels of human capital or other unobserved factors that affect their productivity, and these are now correlated with their pollution exposure because of their decision regarding where to live.
Since the Federal Republic of Germany has established con trollable goals as its contribu tion to the reduction of trans boundary airpollution, and has already implemented important measures towards their realiza tion, it is now primarily the re sponsibility of other European states to take steps towards im proving the situation. It seems likely however that some time will pass before other countries make comparable efforts. There are, to be sure, a number of countries which have under taken to achieve measurable re ductions in emissions, including countries which had adopted ef fective regulations on immission control even before the Federal Republic of Germany did so. However, other countries with high rates of pollutant export are currently not prepared to adopt cleanair policies (and in some cases, as for instance eastern socialist countries or Spain, Portugal, and Ireland, will not be able to do so within the next few years) even with re spect to S 0 2, let alone NOx, comparable to those ofthe Fed eral Republic.
2003). In contrast, PM2.5 concentrations exhibit a less pronounced weekly cycle, given their longer life-time in the atmosphere, consistent with observations elsewhere (Salvo et al., 2015). In short, we deem the Ministry’s pollution data to be reliable.
We do not observe PM2.5 mass concentrations inside, right by the workstations. We rely on a literature in environmental sciences, engineering and epidemiology that finds that fine (including ultrafine) particles penetrate indoors, e.g., Morawska et al. (2001), Cyrys et al. (2004), Gupta and Cheong (2007). For example, Cyrys et al. (2004) report, for a given microenvironment they study, that with “closed windows, the I/O (indoor- outdoor) ratios for PM2.5 are . . . 0.63 . . . (and) that more than 75% ofthe daily indoor variation could be explained by the daily outdoor variation for those pollutants.” The workplace we study is set in a building that is over 30 years old and is directly linked to a ventilated outdoor environment by way of a long row of closed (though likely imperfectly sealed) windows and a large open door, through which yarn (input) and fabric (output) is regularly wheeled in and out (again, see pictures). For comparison, Chang et al. (2014) also proxy for the quality of indoor air using measurements from official outdoor monitors. With observational data, high-frequency indoor measurements are unlikely to be available. In studies where indoor air is measured, this is likely on an experimental basis and may affect behavior; further, measurements (e.g., on handhelds, measuring particle counts) may be of inferior quality compared to an official monitoring site that is regularly subject to standard QA/QC procedures (quality assurance/quality control). It is also conceivable that the worker may arrive to work already feeling unwell due to her exposure to pollution in the preceding hours, while at home or elsewhere (PM2.5 concentrations tend to be persistent over adjacent hours compared to variation across multiple days, when, e.g., wind conditions change). 15
Appendix B: Scientific Background and Potential Mechanisms
Broadly speaking, according to the existing medical literature, airpollution may affect cognition through physiological and psychological pathways.
A few of these physiological pathways have been documented in the literature (Block and Calderón-Garcidueñas 2009). First, multiple pollutants (or toxic compounds bonded to the pollutants) may directly affect brain chemistry. For example, ozone in theair can react with body molecules to create toxins, causing asthma and respiratory problems (Sanders 2012). 20 Particulate matter (PM), especially fine particles, can carry toxins through small passageways and directly enter into the brain. There is evidence that suggests that exposure to high PM concentrations may compromise cognitive performance even for people working indoors (Braniš, Řezáčová, and Domasová 2005). 21
3) Daily counts of Weibo-posts: In order to obtain an impression about the sentiments onairpollution among the general public in Beijing, we analyze the evolution of discussion onairpollutiononthe Chinese social media platform Weibo. Similar to the data collection of online news reporting, the daily frequency ofthe word "airpollution" ("空气污染") has been compiled for users from Beijing in 2012 and 2013. Weibo is used as an indicator for measuring public sentiment, as it has
Second, people breathing polluted air are more likely to be subject to oxygen deficiency, which in turn impairs their cognitive abilities (Amitai et al. 1998; Kampa and Castanas 2007). Carbon monoxide (CO), one important element ofairpollution, prevents the body from releasing adequate oxygen to vital organs, in particular to the brain, which consume a large fraction of total oxygen intake. Third, airpollution could also damage the immune system, hinder neurological development, and impair neuron behavior, all of which contributeto long-term memory formation (Perera et al. 2009). Fourth, long-term exposure to pollution leads to the growth of white-matter lesions, potentially inhibiting cognition (Calderón-Garcidueñas et al. 2008). Further, exposure to highly concentration airpollution can be linked to markers of neuroinflammation and neuropathology that are associated with neurodegenerative conditions, such as Alzheimer’s disease (Calderón- Garcidueñas et al. 2004; Levesque et al. 2011).
– Robert S. Huff, California State Senate Republican Leader (January 13, 2014)
In 1951, the International Labour Organization (ILO) set up the Committee on Freedom of As- sociation (CFA). Shortly after its inception, the CFA declared strike action to be a fundamental right of organized labor (Gernigon et al., 1998; Gross, 1999). Yet, where workers providing essential public services are concerned, the right to strike is often limited or even denied by national laws or regulations. The most common restriction is a ban on strikes by armed forces, policemen and firefighters, for the legitimate reason that those walkouts would endanger the life, personal safety or healthofthe whole or parts ofthe population. 1 But is that true of strikes by public transit workers? Two extreme positions shape answers to this question. According to the ILO, public transportation does not constitute an essential public service (ILO, 2006, para. 587). Thus, some commentators argue that strikes by transit workers mainly pose an eco- nomic threat, which—being the very essence of industrial action—does not justify a strike ban (Swearengen, 2010). Policy-makers, by contrast, commonly regard mass transit as an essential public service, which segues into the wider concern that major cities and their inhabitants are highly vulnerable to transit strikes. 2 This is exemplified by attempts in numerous countries to also exclude transit workers fromthe right to strike.