Air Pollution and Entrepreneurship

Liwen Guo, Zhiming Cheng, Max Tani, Sarah Cook, Jiaqi Zhao and Xi Chen

No 1196, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: We examine the causal effect of air pollution on an individual's propensity for entrepreneurship in China. Our preferred model, which employs an instrumental variable approach to address endogeneity arising from sorting into entrepreneurship and locational choices, suggests that exposure to higher intensity of air pollution lowers one's proclivity for entrepreneurship. We also find that industrial activity and self-efficacy mediate the relationship between air pollution and entrepreneurship. In addition, education and gender further moderate the relationship between air pollution and self-efficacy. In particular, air pollution negatively affects self-efficacy among the less-educated and females.

Keywords: Air pollution; Entrepreneurship; China (search for similar items in EconPapers)
JEL-codes: J24 L26 Q53 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-cna, nep-ene, nep-ent, nep-env and nep-lma
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https://www.econstor.eu/bitstream/10419/266200/1/GLO-DP-1196.pdf (application/pdf)

Related works:
Journal Article: Air pollution and entrepreneurship (2025)
Working Paper: Air Pollution and Entrepreneurship (2023)
Working Paper: Air Pollution and Entrepreneurship (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1196

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