Air pollution-induced brain drain: Evidence from inventor mobility

Shasha Liu, Dongmin Kong and Jian Zhang

International Review of Financial Analysis, 2024, vol. 91, issue C

Abstract: This study attempts to examine the impact of air pollution on inventor mobility. Specifically, we find that the number of polluting facilities surrounding inventors' workplaces significantly affects their mobility. To establish causality, we introduce the NOx Budget Trading Program of 2003 as an exogenous shock and find consistent results. We further demonstrate that the air pollution drives inventors to relocate to areas with better air quality. We present several economic mechanisms underlying our findings, including inventors' career concerns, knowledge generality, and knowledge complementarity. Finally, we show that the net outflow of inventors negatively affects firms' innovation outputs.

Keywords: Air pollution; Toxic emissions; Inventor; Innovation (search for similar items in EconPapers)
JEL-codes: G32 J24 J28 Q53 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:91:y:2024:i:c:s1057521923004921

DOI: 10.1016/j.irfa.2023.102976

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