EconPapers    
Economics at your fingertips  
 

The impact of air pollution on labour productivity in France

Clara Kögel

Post-Print from HAL

Abstract: This paper investigates the effect of air pollution on labour productivity in French establishments in both manufacturing and non-financial market services sectors from 2001 to 2018. An instrumental variable approach based on planetary boundary layer height and wind speed allows identifying the causal effect of air pollution on labour productivity. The finding shows that a 10% increase in fine particulate matter leads, on average, to a 1.5% decrease in labour productivity, controlling for firm-specific characteristics and other confounding factors. The analysis also considers different dimensions of heterogeneity driving this adverse effect. The negative effect of pollution is mainly driven by service-intensive firms and sectors with a high share of highly skilled workers. This finding is in line with the expectation that air pollution affects cognitive skills, concentration, headache, and fatigue in non-routine cognitive tasks. Compared to an estimation of the marginal abatement cost of PM 2.5 reductions by the Air Quality Directive 2008/50/EC, gains only from the labour productivity channel are equivalent to one-third of the abatement cost over the implementation period. All in all, these estimates suggest that the negative impact of air pollution is much larger than previously documented in the literature.

Keywords: air pollution; labour productivity; planetary boundary layer height (search for similar items in EconPapers)
Date: 2022-10
New Economics Papers: this item is included in nep-eec, nep-eff, nep-ene and nep-env
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03837884
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in 2022

Downloads: (external link)
https://shs.hal.science/halshs-03837884/document (application/pdf)

Related works:
Working Paper: The impact of air pollution on labour productivity in France (2022) Downloads
Working Paper: The impact of air pollution on labour productivity in France (2022) Downloads
Working Paper: The impact of air pollution on labour productivity in France (2022) Downloads
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:hal:journl:halshs-03837884

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2024-03-31
Handle: RePEc:hal:journl:halshs-03837884