The Effect of Air Pollution on Investor Behavior: Evidence from the S&amp;P 500

Heyes, Anthony; Neidell, Matthew; Saberian, Soodeh

doi:10.3386/w22753

Cited by 84 publications

(70 citation statements)

References 38 publications

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“…Pollution.-Recent research points to a possible link from short-term pollution exposure to mood and cognitive function, either of which might influence decision outcomes (Heyes et al 2016;and Szyszkowicz et al 2010). While our main specifications include controls for ambient levels of the main pollutants ( O 3 , P M 2.5 , and CO ), concern may remain that we have failed to control adequately for air-quality effects, and that these are confounding our results.…”

Section: Robustnessmentioning

confidence: 97%

Temperature and Decisions: Evidence from 207,000 Court Cases

Heyes

Saberian

2019

American Economic Journal: Applied Economics

Self Cite

102

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We analyze the impact of outdoor temperature on high-stakes decisions (immigration adjudications) made by professional decision-makers (US immigration judges). In our preferred specification, which includes spatial, temporal, and judge fixed effects, and controls for various potential confounders, a 10°F degree increase in case-day temperature reduces decisions favorable to the applicant by 6.55 percent. This is despite judgements being made indoors, “protected ” by climate control. Results are consistent with established links from temperature to mood and risk appetite and have important implications for evaluating the influence of climate on “cognitive output.” (JEL K37, K41, Q54)

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Section: Robustnessmentioning

confidence: 97%

Temperature and Decisions: Evidence from 207,000 Court Cases

Heyes

Saberian

2019

American Economic Journal: Applied Economics

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102

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“…measures, and exposure levels. Recent work has linked exposure to ozone with reductions in the productivity of agricultural workers (Graff Zivin & Neidell, 2012), whereas increased levels of ambient particulate matter have been linked to reductions in the performance of warehouse workers (Chang, Graff Zivin, Gross, & Neidell, 2016a), call center staffers (Chang, Zivin, Gross, & Neidell, 2016b), industrial workers (He, Liu, & Salvo, 2016), soccer players (Lichter, Pestel, & Sommer, 2017), and possibly participants in equity markets (Heyes, Neidell, & Saberian, 2016). Together, these findings suggest that air pollution imposes significant societal costs through channels beyond those measurable via administrative mortality and morbidity outcomes.…”

Section: Introductionmentioning

confidence: 99%

Ambient air pollution and human performance: Contemporaneous and acclimatization effects of ozone exposure on athletic performance

Mullins

2018

Health Economics

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This paper utilizes a unique dataset of competitive outcomes from intercollegiate track and field competition to identify the relationship between recent ambient pollution exposure histories and human performance among a young and fit population in a diverse range of physically demanding "tasks". I find that higher contemporaneous ozone levels are associated with poorer performances in events that heavily tax the respiratory system. This is the case despite the low exposure levels observed in the studied sample, which are similar to those regularly experienced across the developed world. Such negative performance effects imply that observed ozone exposures are leading to physiological harm, which can be expected to negatively impact economic outcomes through both health and productivity channels. Leveraging the unique structure of the data- which includes location information for competitions and home institutions- I also identify an acclimatization effect whereby recent exposure to higher ozone levels serves to reduce the negative effects of contemporaneous exposure. This finding underscores the importance of regulating peak ozone levels rather than only mean concentrations, as spikes in ambient ozone levels can be particularly damaging to exposed populations.

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“…Regarding the effect of air pollution represented by PM on socioeconomic activities, Ebenstein et al (2016) find that a higher level of PM 2.5 exposure during test exams can cause a significant decline in test scores. Heyes et al (2016) measure the effects of air pollution (PM 2.5 ) in the Manhattan area on investment returns in the New York Stock Exchange. Li et al (2017) highlight the impact of air pollution on labor outflow and labor migration in China.…”

Section: Introductionmentioning

confidence: 99%

“…Heyes et al . () measure the effects of air pollution (PM 2.5 ) in the Manhattan area on investment returns in the New York Stock Exchange. Li et al .…”

Section: Introductionmentioning

confidence: 99%

Does Air Pollution Affect Consumption Behavior? Evidence from Korean Retail Sales*

Kang¹,

Suh

2019

Asian Economic Journal

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Using monthly regional panel data on air quality and large retail store sales in Korea, we empirically examine the effect of air pollution on retail sales. We account for regional heterogeneity in air pollution and control for various macroeconomic and climatic factors that can affect retail sales. We also use the air quality indicator in the west coastal islands (affected by trans‐border pollution but uncorrelated with the economic activity in the mainland) as an instrumental variable. The estimation results show that, in general, 1 additional day of PM10 level higher than 80 μg/m3 reduces monthly retail sales by approximately 0.1 percent. Nonetheless, an adaptive pattern emerges over time, particularly when the level of air pollution in the previous month was severe.

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The Effect of Air Pollution on Investor Behavior: Evidence from the S&P 500

Cited by 84 publications

References 38 publications

Temperature and Decisions: Evidence from 207,000 Court Cases

Temperature and Decisions: Evidence from 207,000 Court Cases

Ambient air pollution and human performance: Contemporaneous and acclimatization effects of ozone exposure on athletic performance

Does Air Pollution Affect Consumption Behavior? Evidence from Korean Retail Sales*

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