Air pollution and labour productivity: firm-level spatial evidence from China
As environmental degradation increasingly threatens sustainable growth, understanding the impact of air pollution on firm performance has become a critical area of research. This study investigates the influence of delicate particulate matter (PM _1 ) on labour productivity, utilising firm-level dat...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
IOP Publishing
2025-01-01
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| Series: | Environmental Research Communications |
| Subjects: | |
| Online Access: | https://doi.org/10.1088/2515-7620/adeceb |
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| Summary: | As environmental degradation increasingly threatens sustainable growth, understanding the impact of air pollution on firm performance has become a critical area of research. This study investigates the influence of delicate particulate matter (PM _1 ) on labour productivity, utilising firm-level data from Chinese A-share listed companies and employing spatial econometric models alongside a bespoke firm-level spatial weight matrix. To address endogeneity issues, the temperature inversion variable is instrumental in ascertaining the causal effect of PM _1 pollution. The findings indicate that PM _1 significantly diminishes labour productivity in the affected firms, generating detrimental spatial spillover effects on neighbouring firms Additionally, further analysis of heterogeneity demonstrates that state-owned and labour-intensive enterprises exhibit reduced susceptibility to pollution shocks. In contrast, non-state-owned, technology-intensive, and capital-intensive firms experience more substantial losses in labour productivity. These insights emphasise the necessity to customise environmental policies and industrial support measures according to the distinctive characteristics of individual firms. |
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| ISSN: | 2515-7620 |