Heads Up: Does Air Pollution Cause Workplace Accidents?

Victor Lavy, Genia Rachkovski and Omry Yoresh

No 30715, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Air pollution can adversely affect physiological and cognitive performance. This study estimates the causal effect of increased nitrogen dioxide (NO2), a primary air pollutant, on construction work accidents, a significant factor related to labor market productivity losses. Using data from all construction sites and pollution monitoring stations in Israel, we find a strong and significant effect on accidents, with a 377% (138%) increase on high (moderate) NO2 pollution days compared to clean air levels. Our mechanism analysis suggests the effect is exacerbated under cognitive strain or worker fatigue. A cost-benefit analysis, supported by a nonparametric estimation, examines subsidizing site closures on highly polluted days.

JEL-codes: I10 I15 J01 J24 Q51 Q52 Q53 (search for similar items in EconPapers)
Date: 2022-12
New Economics Papers: this item is included in nep-ene, nep-env, nep-lma and nep-neu
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