China Policy Journal Volume 1, Number 1, Fall 2018 | Page 104

Subjective and Objective Air Quality in Urban China Constant 6.37*** 6.37*** 6.35*** 6.47*** 6.37*** 6.41*** 6.39*** 6.37*** 6.38*** 6.40*** 6.69*** 6.59*** 6.64*** (0.15) (0.14) (0.15) (0.14) (0.15) (0.18) (0.15) (0.13) (0.11) (0.12) (0.18) (0.16) (0.17) Random effects Variance 0.71 0.64* 0.55** 0.51*** 0.69 0.59** 0.60** 0.52*** 0.36*** 0.43*** 0.58** 0.45*** 0.50*** (L2) (0.18) (0.16) (0.14) (0.13) (0.17) (0.15) (0.15) (0.13) (0.09) (0.11) (0.15) (0.12) (0.13) Variance 3.63*** 3.55*** 3.56*** 3.56*** 3.55*** 3.56*** 3.56*** 3.55*** 3.56*** 3.56*** 3.55*** 3.56*** 3.56*** (L1) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) AIC 103,938 95,487 92,775 92,773 95,489 92,777 92,778 95,480 92,762 92,767 95,484 92,769 92,772 BIC 103,962 95,552 92,855 92,853 95,554 92,858 92,858 95,545 92,843 92,847 95,548 92,849 92,853 N 25,139 23,221 22,543 22,543 23,221 22,543 22,543 23,221 22,543 22,543 23,221 22,543 22,543 Note: Standard errors in parentheses. ***p<0.01, **p<0.05, *p<0.1. either AQTI or PITI as the moderator (see Models 6 and7). In terms of PM 10 , the moderating effects of both AQTI (β=0.80, p<0.01) and PITI (β=0.83, p<0.05) are supported (see Models 9 and 10). In the case of AQI, only the moderating effect of AQTI is significant and positive (β=0.03, p<0.05) (see Models 12 and 13). In sum, the substantially similar results among the four air pollutants corroborate Hypothesis 2. To visually illustrate the moderating effect of environmental transparency on the relationship between objective and subjective air quality measures, we draw the marginal changes of simple slopes of air pollution as the function of the two moderators in Figure 2. In Panel A of Figure 2, we reveal that air pollution (measured by SO 2 ) is negatively associated with subjective air quality when PITI is at the −1 standard deviation (SD) condition, but its sign turns to be slightly positive at the +1 SD condition. The result suggests the negative effect of air pollution (herein SO 2 ) on subjective air quality is attenuated with the increment of environmental transparency (PITI). When the value of centered PITI (ranging from −27.355 to 33.145) is larger than the lower confidence bound of region at the 0.05 level (−2.2323), the slopes of air pollution turn to be statistically insignificant. Pan- 101