Making the Invisible Visible: The Impact of Revealing Indoor Air Pollution on Behavior and Welfare

Robert Metcalfe () and Sefi Roth

No 33510, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Exposure to ambient air pollution has been shown to be detrimental to human health and productivity, and has motivated many policies to reduce such pollution. However, given that humans spend 90% of their time indoors, it is important to understand the degree of exposure to Indoor Air Pollution (IAP), and, if high, ways to reduce it. We design and implement a field experiment in London that monitors households’ IAP and then randomly reveals their IAP in real-time. At baseline, we find that IAP is worse than ambient air pollution when residents are at home and that for 38% of the time, IAP is above World Health Organization standards. Additionally, we observe a large household income-IAP gradient, larger than the income-ambient pollution gradient, highlighting large income disparities in IAP exposure. During our field experiment, we find that the randomized revelation reduces IAP by 17% (1.9 μg/m³) overall and 34% (5 μg/m³) during occupancy time. We show that the mechanism is households using more natural ventilation as a result of the feedback (i.e., opening up doors and windows). Finally, in terms of welfare, we find that: (i) households have a willingness to pay of £4.8 ($6) for every 1 μg/m ³ reduction in indoor PM2.5; (ii) households have a higher willingness to pay for mitigation than for full information; (iii) households have a price elasticity of IAP monitor demand around -0.75; and (iv) a £1 subsidy for an IAP monitor or an air purifier has an infinite marginal value of public funds, i.e., a Pareto improvement.

JEL-codes: Q5 Q53 (search for similar items in EconPapers)
Date: 2025-02
New Economics Papers: this item is included in nep-dcm, nep-ene, nep-env, nep-exp and nep-hea
Note: EEE
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