International transboundary air pollution poses a significant threat to the global economy and health, yet conventional economic analyses seldom incorporate this phenomenon. By integrating transboundary particle trajectory data with individual-level mortality and emergency department visit records, we find that air pollution from China significantly increases mortality and morbidity in South Korea. We evaluate the spillover benefits of recent Chinese environmental regulations and find that a country's environmental policies could generate substantial hidden benefits for neighboring countries. Finally, we demonstrate that China's potentially strategic reductions in pollution could have undermined these benefits, highlighting the implications for additional gains through Coasian bargaining.

We study attribute-based regulations, under which regulatory compliance of a firm, product, or individual depends on a secondary attribute that is not the intended target of the regulation. We develop a theoretical model of the welfare consequences of attribute basing, including its distortionary costs and potential benefits. We then quantify these welfare consequences using quasi-experimental evidence from weight-based fuel economy regulations.We use bunching analysis to showthat vehicle weight increased in response to regulation. We also leverage a policy change and develop a new method for analyzing double-notched policies to compare the costs and benefits of a specific attribute-based policy.