The interactive effects of temperature and air quality on productivity

James Goodenberger, Robert Munk and Garrett Senney

Applied Economics, 2025, vol. 57, issue 37, 5696-5713

Abstract: This paper estimates the effects of carbon monoxide, sulphur dioxide, nitrogen dioxide, ozone, and particulate matter on the productivity at a Midwestern U.S.A. factory using real-time data from 1983–89. We confirm that elevated concentrations of the five pollutants significantly reduces productivity, with ozone and carbon monoxide having the largest effects. We also find that models including only one pollutant may yield biased marginal effects, with the largest bias in ozone, sulphur dioxide, and nitrogen dioxide. Additionally, omitting ozone leads to a substantial bias in the estimation of the productivity effects of temperature. This suggests that both temperature and ozone must be accounted for. Finally, we find that high temperatures meaningfully modify the marginal effects of pollutants, except for sulphur dioxide. Our results are found at pollution concentration levels that are lower than the current EPA standards.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2024.2365457 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:applec:v:57:y:2025:i:37:p:5696-5713

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2024.2365457

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().