Does the increase of public transit fares deteriorate air quality in Beijing?. (August 2018)

• Record Type: Journal Article
• Authors: Yang, Ziying; Tang, Manping
• Is Part Of: Transportation research. Volume 63(2018)
• Page Start: 49
• Page End: 57
• Publication Date: 2018-08
• Subjects: Beijing public transit -- Fare increase -- Air pollution -- Transit subsidies; L62 -- Q53 -- Q58 -- R48; Transportation -- Research -- Periodicals; Transportation -- Environmental aspects -- Periodicals; 354.76
• DOI: 10.1016/j.trd.2018.04.020
• Languages: English
• ISSNs: 1361-9209

Abstract

Highlights: On December 28, 2014, Beijing increased its public transit fares. We investigate the effect of this fares adjustment on air quality in Beijing. We find a 16.28% increase in air pollution in short run. However, we find no longer-run effect on air quality. Abstract: Since 2006, Beijing lowered its public transit fares as a way to improve air quality. However, Beijing increased public transportation fare prices from December 28, 2014, and commuters pay for the distance they traveled rather than a flat fare. This paper explores the effect of Beijing public transit fares increase on air quality. We collect daily data of air pollution and weather variables and use synthetic control method of Abadie and Gardeazabal (2003) to select control units. We then estimate a difference-in-differences model and assess the effect of the policy on air quality index (AQI). We find a 16.28% increase in air pollution in short run. However, we find no longer-run effect on air quality.