Air Quality and Manufacturing Firm Productivity: Comprehensive Evidence from China

Shihe Fu (), V. Viard and Peng Zhang

MPRA Paper from University Library of Munich, Germany

Abstract: We provide comprehensive estimates of air pollution’s effect on short-run labor productivity for manufacturing firms in China from 1998 to 2007. An emerging literature estimates air pollution’s effects on labor productivity but only for small groups of workers of particular occupations or sets of firms to ensure causality. To provide more comprehensive estimates necessary for policy analysis, we estimate effects for all but some small firms (90% of manufacturing output in China) and capture all channels by which pollution influences productivity. We instrument for reverse causality between pollution and output using thermal inversions. Our causal estimates imply that a one

Keywords: air pollution; productivity; environmental costs and benefits; firm competitiveness (search for similar items in EconPapers)
JEL-codes: D62 Q51 Q53 R11 (search for similar items in EconPapers)
Date: 2017-04-20
New Economics Papers: this item is included in nep-agr, nep-cna, nep-eff, nep-ene, nep-env, nep-sbm, nep-tid and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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https://mpra.ub.uni-muenchen.de/78914/1/MPRA_paper_78914.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/81150/9/MPRA_paper_81150.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/105271/16/MPRA_paper_105271.pdf revised version (application/pdf)

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