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This paper assesses the impact of cross-border air pollution from China to South Korea. Since both countries share similar business cycles and hence pollution cycles, separating pollution spillover from locally generated pollution is difficult. To overcome this challenge, we exploit within-South Korea variations in the incidence of Asian dust – a meteorological phenomenon in which yellow dust clouds passing over China are carried eastward to South Korea by strong, stable westerly winds – together with temporal variations in China’s air quality. Analysis based on monthly data from South Korea and China for 2000-2011 shows that at the mean incidence of Asian dust, a one standard deviation increase in China’s pollution leads to around 280 extra deaths per year in South Korea from respiratory and cardiovascular diseases, with additional effects on overall mortality for children aged below five. We also compare the role of Asian dust as a carrier of China’s pollution with that of westerly winds. ∗We are grateful to Richard Carson, Christian Dustmann, Michael Greenstone, Gordon Hanson, Mark Jacobsen, Dan Jaffe, Uta Schoenberg, Fabrizio Zilibotti, and seminar/conference participants at AEA, Chicago, CIFAR, Tsinghua, UCL, UCSD, USC, China Economic Summer Institute for their comments. We also thank Junjie Zhang for his help with the wind data and gratefully acknowledge financial support from the Canadian Institute for Advanced Research. †School of Global Policy and Strategy, University of California San Diego, rxjia@ucsd.edu. ‡Department of Economics, University College London, h.ku@ucl.ac.uk

Is China's Pollution the Culprit for the Choking of South Korea? Evidence from the Asian Dust