JUE insight: Do ride-sharing services cause urban air pollution?

Abstract

This paper investigates the impact of ride-sharing services on urban air pollution across 284 cities in China. While the theoretical implications of ride-sharing services on air quality remain ambiguous, empirical analysis of a daily panel dataset reveals that the introduction of ride-sharing services in a city significantly reduces urban air pollution levels. On average, cities experience at least a three percent decrease in air pollution following the launch of these services. Mechanism analysis indicates that ride-sharing services contribute to reduced peak-hour traffic congestion, a decline in new car registrations, and an increase in public transit ridership. These findings quantify the environmental benefits associated with ride-sharing services and provide valuable insights for policymakers seeking to regulate the ride-sharing industry and enhance urban air quality.