The role of environmentalism and public policy in reducing air pollution: A US-China comparison

One of the most debatable questions among developmental and environmental economists today is how long it will take China to reduce its current ambient air pollution levels to the levels acceptable by the World Health Organization.  There are many factors that contribute to the sluggishness of the cleaning up attempts.  One reason is Chinese government’s explicit or implicit emphasis on economic growth at the expense of environmental quality. Another reason is China’s dependence on coal, a cheap source of energy.  Yet, another contributing factor is the lack of incentives for local governments to enforce the environmental laws that are passed by the central government.  These factors have been extensively discussed in the economics literature.  What has not been statistically tested, however, is the effect of the environmental movement and activism on the speed of the cleaning-up efforts.  One of the reasons why the United States, for example, has been rather successful in improving the air quality (though not so much in terms of the greenhouse effects) is that the environmental groups were very active in the 1970 -1990s.  Democracy per se may not clean the air, yet it may generate the conditions in which people choose the leaders and government officials who cater to the public’s demand for clean air.  The objective of this empirical study is to compare the role of environmentalism and public policy in reducing air pollution in the United States, in the 1960s-1990s, and in China, during the last 30 years. We summarize the history of development of US air quality standards and draw parallels with the development of such policy in China.  Policy implications and recommendations are discussed.