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A holistic approach to evaluating environmental policy impact using a difference-in-differences model.

Jianglong Cui1, Tiansen Zou1,2, Hengyuan Zhao3

  • 1State Key Laboratory of Environmental Criteria and Risk Assessment, Chinese Research Academy of Environmental Sciences, Beijing, 100012, China.

Environmental Science and Ecotechnology
|March 19, 2025
PubMed
Summary

Environmental protection policies (EPPs) improve water quality. A difference-in-differences approach showed the Resident Work (RW) policy reduced pollution by 0.0098, especially in poorer areas.

Keywords:
Difference-in-differencesEnvironmental protection policiesResident work policyWater qualityYangtze River Basin

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Area of Science:

  • Environmental Science
  • Environmental Policy
  • Econometrics

Background:

  • Environmental protection policies (EPPs) are crucial for sustainable development and ecological balance.
  • A robust methodology for evaluating EPP effectiveness is currently lacking.
  • Assessing policy impact is vital for informed environmental management.

Purpose of the Study:

  • To evaluate the effectiveness of Environmental Protection Policies (EPPs).
  • To assess the impact of the Resident Work (RW) policy on water quality using a quasi-natural experiment.
  • To demonstrate the utility of the difference-in-differences (DID) model for policy evaluation.

Main Methods:

  • Employed a difference-in-differences (DID) approach.
  • Utilized urban-level panel data from the Yangtze River Basin (2016-2021).
  • Applied the Resident Work (RW) policy as a quasi-natural experiment.

Main Results:

  • The RW policy led to a 0.0098 reduction in water pollution.
  • Water quality improvements were progressive over time.
  • Economically disadvantaged cities showed stronger positive effects.

Conclusions:

  • The DID model is effective for quantifying EPP impacts on water quality.
  • The RW policy demonstrated a significant positive effect on water quality.
  • This study provides a scalable framework for environmental policy evaluation.