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April 11, 2026Journal of African Economies

Unintended costs of clean air: evidence from South Africa's environmental regulation and household consumption

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Authors

JZJialiang ZhuXiamen UniversityMAMichael Akwasi Appiah-KubiAfrica CenterFYFanhan YiXiamen University

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Overview

This analysis examines the impact of air pollution regulations on household consumption, highlighting economic trade-offs.

Key Points

  • The study investigates how South Africa's 2013 Minimum Emission Standards affect household welfare and consumption levels.
  • Utilized the National Income Dynamics Study panel data from 2008 to 2017.
  • Employed a difference-in-differences design to assess consumption changes post-regulation.
  • Implemented an instrumental variable strategy analyzing historical mining and wind patterns.
  • Households in affected provinces saw a consumption reduction of approximately 4 to 5 percent per year post-2013.
  • Larger consumption losses were reported in more industrialized provinces.
  • Employment losses and income reductions were significant contributors to the consumption decline.

Cite This Study

Zhu et al. (2026) studied this question.

synapsesocial.com/papers/69d9e62078050d08c1b765dfhttps://doi.org/10.1093/jae/ejag004
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