Abstract
This paper investigates the existence and magnitude of air pollution spillovers in Chinese cities. Estimation of this spillover effect is complicated because neighboring cities share similar business/pollution cycles and changes in wind direction can be fairly frequent. To circumvent these empirical challenges, we exploit spatial and temporal variations in PM10 concentrations for 108 major cities in China s Eastern Monsoon Region during the East Asian winter and summer monsoon seasons. We find large pollution spillover effects: a city s average PM10 concentration increases by 0.09-0.21 units during the winter monsoon season and by 0.06-0.10 units during the summer monsoon season, if PM10 concentrations in cities upwind of this city increase by one unit. The percentage contributions of PM10 pollution from upwind cities to local PM10 levels vary by region and can be as large as 30%. These findings are comparable to the existing atmospheric evidence. Our findings suggest that pollution control policies must be coordinated between cities to abate urban air pollution. Acknowledgement :
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