Wang, Xihao2023-02-282023-02-282022https://udspace.udel.edu/handle/19716/32366I set out to study two of the recent environmental policies in China by focusing on their causal influence on reduced air pollution. In the first chapter, I look into a policy that restricted the use of fireworks during the Chinese New Year (CNY). The Spring Festival in China is traditionally celebrated with nationwide fireworks displays, ranging from large-scale organized firework shows to recreational firecrackers set off by each household. Air pollution caused by the explosion of fireworks has raised public concerns in recent years, prompting local governments to adopt policies to curb firework activities during the festival in an effort to improve air quality. I take advantage of the fact that this fireworks restriction policy is implemented in some but not all of the cities in China, and I employ a difference-in-differences strategy to identify the effectiveness of the policy in reducing air pollution. Results show that cities with fireworks restrictions have a lower amount of increase in the fine particulate matter PM2.5 on the day of the Chinese New Year (CNY), and the effect of the policy is most significant around the beginning hours of CNY. Finally, this paper uses results from previous research on the relationship between PM2.5 and life years lost to obtain an estimate of the social benefit of the restriction policy, which is approximately RMB 361 million per year in a conservative estimation. The second chapter focuses on another policy that targets coal-fired power plants that provide heating during the winter. Using a difference-in-differences design, I find out that, on average, cities implementing the policy have achieved a significant differential reduction in SO2, PM2.5, PM10, NO, and CO. A triple difference estimation then reveals that the policy’s effect is mainly driven by an improved air quality during the heating months. Moreover, I show that the reduction is significant in both heating and non-heating months, though the magnitudes of the effect are stronger during the heating months. The paper therefore provides evidence that the policy is not only successful in addressing the pollution during the winter, but also has spillover effects on the non-heating season at the same time.Environmental policies in ChinaUse of fireworksCoal-fired power plantsThesis1371287228https://doi.org/10.58088/y10p-k7892022-09-21en