Improved Daily Nighttime Light Data as High-Frequency Economic Indicator

Daily nighttime light (NTL) observations made by remote sensing satellites can monitor human activity at high temporal resolution, but are often constrained by residual physical disturbances. Even in standard products, such as NASA’s Black Marble VNP46A2, factors related to sensor viewing geometry, lunar illumination, atmospheric conditions, and seasonality can introduce noise into daily radiance retrievals. This study develops a locally adaptive framework to diagnose and correct residual disturbances in daily NTL data. By estimating location-specific regression models, we quantify the residual sensitivity of VNP46A2 radiance to multiple disturbance factors and selectively remove statistically significant components. The results show that the proposed approach effectively removes statistically significant residual disturbances from daily NTL data in the VNP46A2 product. An application for COVID-19 containment periods in China demonstrates the effectiveness of the proposed approach, where corrected daily NTL data exhibit enhanced temporal stability and improved interpretability. Further analysis based on event study approaches demonstrates that corrected daily NTL data enable the identification of short-run policy effects that are difficult to detect with lower-frequency indicators. Overall, this study enhances the suitability of daily NTL data for high-frequency socioeconomic applications and extends existing preprocessing approaches for daily NTL observations.