Goodhart’s Law in the Atmosphere: The Unseen Costs of Blue Skies

This episode explores China's "war on pollution," which successfully reduced fine particulate matter (PM2.5) but inadvertently led to a significant surge in ground-level ozone, an equally dangerous pollutant. A new NBER paper reveals this "unseen cost" partially erased the policy's benefits, highlighting a complex pollutant substitution effect. Listeners will learn about the unintended consequences of environmental policies and the importance of considering pollutant interactions.