Does asymmetric persistence in convergence of the air quality index (AQI) exist in China?

Abstract

In recent years, China's air pollution has caused significant concern in the academia. China is the hub of business and financial activities, with the most populous cities. It is important to determine the convergence and asymmetric persistence of air quality index (AQI hereafter) in China to achieve sustainable development goals, especially the ones related to the environment. This paper uses the Fourier quantile unit root test to check for inter-regional convergence of monthly AQI for 74 cities across China from January 2013 to July 2019. For a comparative baseline analysis, five conventional univariate and quantile unit root tests are also conducted. The empirical outcomes show that the Fourier quantile unit test exhibits a significant advantage in detecting smooth breaks and evaluating the asymmetric behavior and mean-reverting properties of AQI. Moreover, the monthly AQI in 70 out of 74 C0hinese cities are stationary processes. These findings not only focus on the appropriate use of relevant modeling techniques of smooth breaks and asymmetries in the AQI series of the 74 Chinese cities but also provide crucial environmental sustainability and economic implications for AQI regulation policies.