Working Paper

Population density and urban air quality

Rainald Borck, Philipp Schrauth
CESifo, Munich, 2019

CESifo Working Paper No. 7629

We use panel data from Germany to analyze the effect of population density on urban air pollution (nitrogen oxides, particulate matter and ozone). To address unobserved heterogeneity and omitted variables, we present long difference/fixed effects estimates and instrumental variables estimates, using historical population and soil quality as instruments. Our preferred estimates imply that a one-standard deviation increase in population density increases air pollution by 3-12%.

CESifo Category
Resources and Environment
Public Finance
JEL Classification: Q530, R120