The value of information disclosure: Evidence from mask consumption in China

Zhenxuan Wang and Junjie Zhang

Journal of Environmental Economics and Management, 2023, vol. 122, issue C

Abstract: We study the effect of information provision on defensive expenditures, using China’s roll-out of air pollution information as a quasi-natural experiment. With a unique dataset of high-frequency mask purchase transactions, our difference-in-differences estimates show that the provision of air pollution information increases expenditures on PM2.5 respirators by 32%, which is mainly driven by improved information quality and the addition of PM2.5 index. The effect is enhanced by increased attention to pollution alerts and it is more pronounced during heavily polluted days. Our results shed light on the benefits of information provision through inducing defensive expenditures to reduce air pollution exposure.

Keywords: Information provision; Air pollution; Defensive expenditures (search for similar items in EconPapers)
JEL-codes: I12 Q51 Q53 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:122:y:2023:i:c:s0095069623000839

DOI: 10.1016/j.jeem.2023.102865

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