Eric Zou, Cornell University

We study the 2013 sea change in pollution information availability when China rolled out a national pollution monitoring network in three waves to disclose real-time air quality in more than 300 cities. We document a surge in media mention as well as citizens’ interest in pollution topics. We then show how short- and long-run avoidance behavior change with better information. First, we use detailed point-of-sale (POS) credit and debit card transaction data to show that high outdoor pollution suppresses daily purchase trips, much more so when the public gained access to information. Second, the spatial variation in pollution levels either across cities or across communities within a city is better reflected in housing prices post disclosure. Finally, we use national disease surveillance data to show that the correspondence between air pollution exposure and mortality rate weakens post disclosure. The estimates from our analysis suggest that the information program has reduced premature deaths attributable to air pollution exposure by nearly 9%.