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Air Pollution and Manufacturing Firm Productivity

Nationwide Estimates for China

Bibliographic Data

ID9711900
AuthorsShihe Fu (0000-0003-3978-0000, Xiamen University), V Brian Viard (0000-0001-8571-8318, Cheung Kong Graduate School of Business, corresponding author), Peng Zhang (0000-0001-6953-800X, The Chinese University of Hong Kong, Shenzhen, Shenzhen Finance Institute & Shenzhen Research Institute of Big Data, China)
Year2021
Volume131
Issue640
Pages3241-3273
Publication date2021-11-08
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (PUBLISHER • GB)
DOI10.1093/ej/ueab033
OpenAlexW3159116975
LanguageEN
Citations received61
References cited75

We provide nationwide causal estimates of air pollution's effect on short-run productivity for China's manufacturing sector from 1998 to 2007. Using thermal inversions as an instrument, a 1 μg/m3 decrease in PM2.5 increases productivity by 0.82% (elasticity of −0.44). Increased hiring attenuates the elasticity to −0.17. Differential effects of a trade shock on coastal versus inner regions imply a pollution elasticity of output of 1.43. Simulating a dynamic general-equilibrium model yields an output elasticity of −0.28 with respect to PM2.5. An exogenous 1% decrease in PM2.5 nationwide increases gross domestic product by 0.039

Agricultural economics · Air pollution · China · Econometrics · Economics · Elasticity (physics · Geography · Gross domestic product · Macroeconomics · Productivity · Chemistry · Ecology · Energy, Environment, Economic Growth · Environmental Impact and Sustainability · Fiscal Policy and Economic Growth · Materials Science · Pollution

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Unique citing works61
Citations per year12,2
Citation span2021 - 2026 (6)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 61

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