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Urban Development and Air Pollution: Evidence from a Global Panel of Cities

Christian A. L.  Hilber,  Charles  Palmer,  December 2014
Paper No' SERCDP0169: | Full paper (pdf)
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Keywords: Urbanization, urban form, decentralization, air pollution, transport, built environment

JEL Classification: Q01; Q53; R11; R41

Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: SERC Discussion Papers
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Abstract:

We exploit a unique panel of 75 metro areas (‘cities’) across the globe and employ a city-fixed effects model to identify the determinants of within-city changes in air pollution concentration between 2005 and 2011. Increasing car and population densities significantly reduce air pollution concentration in city centers where air pollution induced health risks are greatest. These effects are largely confined to cities in non-OECD countries. Two possible mechanisms for the negative effect of car density are explored: (i) increasing car density permits a decentralization of residential and economic activity; and (ii) car usage substitutes for motorbike usage. We find limited evidence in favour of (i) and no evidence in favour of (ii). We also observe a complex relationship between income and pollution concentration as well as a general downward-trend in pollution concentration over time. Overall, our findings are indicative that densely populated polycentric cities may be ‘greener’ and ‘healthier’ than comparable monocentric ones.