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Unwatched Pollution: The Effect of Intermittent Monitoring on Air Quality

American Economic Review 2021 111(7), 2101-2126
Intermittent monitoring of environmental standards may induce strategic changes in polluting activities. This paper documents local strategic responses to a cyclical, once-every-six-day air quality monitoring schedule under the federal Clean Air Act. Using satellite data of monitored areas, I show that air quality is significantly worse on unmonitored days. This effect is explained by short-term suppression of pollution on monitored days, especially during high-pollution periods when the city’s noncompliance risk is high. Cities’ use of air quality warnings increases on monitored days, which suggests local governments’ role in coordinating emission reductions.