Air Pollution and Entrepreneurship

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

No 1208, 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. A one standard deviation increase in air pollution leads to a 21.2% decrease in the propensity for entrepreneurship. We also find that self-efficacy is a channel in the relationship between air pollution and entrepreneurship. In addition, education moderates the relationship between air pollution and self-efficacy.

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
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/266781/1/GLO-DP-1208.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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1208

Access Statistics for this paper

More papers in GLO Discussion Paper Series from Global Labor Organization (GLO) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().