Evaluating policy effectiveness in mitigating urban air pollution: Insights from developing economies

Abstract

Urban air pollution remains a critical challenge in developing countries, exacerbated by rapid urbanization and industrialization. This study makes a significant contribution to the literature by evaluating the effectiveness of China's strategic policy measures aimed at mitigating urban air pollution. Using a difference-in-differences (DID) methodology, we analyze data from 268 cities, providing one of the most comprehensive assessments of air quality improvement efforts across urban centers in China. Our findings highlight substantial reductions in air pollution levels, particularly in large and resource-rich cities, following policy implementation. This study is among the first to demonstrate the role of technological innovation, industrial restructuring, and public transportation improvements as key mechanisms driving these outcomes, offering new insights into policy effectiveness. Rigorous robustness checks, including parallel trend and placebo tests, confirm the validity of our results. Our research contributes to the broader understanding of environmental policy impacts in developing countries and provides a valuable framework for tackling urban air quality challenges globally.