Does Air Pollution Affect Productivity?


The Effect of Pollution on Worker Productivity: Evidence from Call-Center Workers in China (Abstract, Tom Chang, Joshua Graff Zivin, Tal Gross, Matthew Neidell, NBER Working Paper No. 22328, Jun. 2016)
Also discussed here: The effect of pollution on worker productivity: Evidence from call-centre workers in China (Tom Chang, Tal Gross, Joshua Graff Zivin, Matthew Neidell, VOX- CEPR’s Policy Portal, Jul. 15, 016)

And here:Pollution is bad for your health, but is it also making you less productive? (Tal Gross, Tom Chang, Joshua Graff Zivin, Matthew NeidellWorld Economic Forum, Jul. 25, 2016)

Today we review research that looks at how the productivity of call workers in China was affected by higher levels of pollution. Results indicate that a 10% increase in the Air Pollution Index (API) was associated with a 0.3% drop in calls handled each day. Translated to China’s office workers as a whole, a 10% improvement in air pollution equates to $2.2 Billion/year in productivity. Or, to put it in a big city North American context (Los Angeles), were the 90 days that pollution levels exceeded EPA standards eliminated, the productivity for that city alone would be $378 greater. As the authors comment in terms of broader implications, pollution restrictions, aimed at an improved environment, are sometimes seen as a negative, unfair “tax” by businesses. This paper shows that it could help rather than hinder their bottom line.

pollution-productivity

To see Key Quotes and Links to key reports about this post, click HERE

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