New Evidence of the Effect of Beijing's Driving Restriction and Other Olympic-Year Policies on Air Pollution

Abstract

Seven Chinese cities have enacted One-Weekday Limit (OWL) driving restrictions following Beijing's implementation shortly after the Olympics in 2008. Existing literature examines the short-run effect of the OWL or the long-run effect of the Olympic-year policy package on air pollution in Beijing. Using two difference-in-differences (DD) approaches, this study compares the long-run effect of the Olympic-year policy package with the effect of the OWL. Using the city of Tianjin as a control, this study finds a significant drop in pollution due to the Olympic-year policy package. Using weekends as a control, this study finds a much smaller and less significant drop due to the OWL. These new findings suggest that compared to the OWL, other policies enforced in the Olympic year account for a greater portion of the drop.