Dynamic Contagion of Air Quality between Eastern China and South Korea

Purpose While some argue that air pollutants from China undermine the air quality in South Korea, others claim that South Korea is to blame for its own bad air quality. This study investigates the impact of pollutants from China upon Korea’s air quality. Design/Methodology/Approach Using an econometric approach, this study investigates the impact of pollutants from China upon Korea’s air quality by utilizing a bivariate Granger causality. Simultaneously, this study runs a Granger causality test with a seasonality dummy to examine seasonal heterogeneity in the impact of air pollution from China on the air quality in South Korea. Findings The results of the study indicate that all major cities selected were estimated contributors to air pollution in South Korea. Regarding seasonal heterogeneity, some cities like Dandong, Dalian, and Shenyang do exhibit seasonal causal effects although not all eastern Chinese regions tested have seasonal variations. Research Implications The resulting policy implication is that joint Chinese and South Korean pollution control efforts are needed to tackle this transboundary environmental issue. This study also confirms that South Korea experiences more severe impacts of transported air pollutants from some eastern Chinese regions especially in the spring and winter season. Therefore, seasonal variation should be taken into consideration when the two countries devise measures to tackle the problem.