Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Thematic Session 5: Air Pollution and the Economy: A Global Perspective (HYBRID) Location: Auditorium M: Jan Mossin Session Chair: Ruozi Song, World Bank Session Chair: Carolyn Fischer, World Bank | |
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The Cost of Air Pollution for Workers and Firms 1: CREST; 2: ENSAE; 3: Paris School of Economics; 4: CNRS This paper shows that even moderate air pollution levels harm firm performance. We estimate the causal impact of PM2.5 on firms’ sales and worker absenteeism with administrative data from France, exploiting exogenous pollution shocks from wind direction changes. A 10% increase in PM2.5 lowers sales by 0.4% over the next two months, while increasing sick leave by 1%. However, these labor supply reductions explain only part of the sales drop. Our findings suggest air pollution also reduces productivity and demand. The economic benefits of complying with WHO air quality guidelines match the cost of regulation and avoided mortality benefits. | |