Assessing the impact of green nudges on ozone concentration: Evidence from China's night refueling policy

Abstract

Ozone (O3) pollution poses health risks and premature mortality, and gas stations are one of the largest sources of urban volatile organic compounds (VOCs, the main precursor to O3). This paper investigates whether the government's call for night refueling, which can be regarded as a green nudge, can guide changes in consumer behavior and consequently improve environmental quality. Using a difference-in-differences (DID) estimation and weekly monitoring site air quality panel data, we analyze the effect of the Night Refueling Preferential Policy on O3 concentrations. We find that the policy can reduce O3 concentrations by 10% by encouraging consumers to refuel at night. The reduction in O3 has brought great benefits to human health, leading to a 4–5‰ reduction in non-accidental mortality and a 6–8‰ reduction in cardiovascular mortality in Jiangsu province. The economic benefits of this policy would be approximately 62–189 billion Chinese Yuan (CNY) if it were implemented nationwide. The findings of this study suggest that the government can influence consumer behavior to promote environmental quality.