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: Yi Zhang, Weijun Liang, Yongfu Liang
Format: Article
Language:English
Published: IOP Publishing 2025-01-01
Series:Environmental Research Communications
Subjects:
Online Access:https://doi.org/10.1088/2515-7620/adeceb
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author Yi Zhang
Weijun Liang
Yongfu Liang
author_facet Yi Zhang
Weijun Liang
Yongfu Liang
author_sort Yi Zhang
collection DOAJ
description 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
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series Environmental Research Communications
spelling doaj-art-29a2d5c4e55b4d7d87e793a120ec0e822025-08-20T03:15:27ZengIOP PublishingEnvironmental Research Communications2515-76202025-01-017707502310.1088/2515-7620/adecebAir pollution and labour productivity: firm-level spatial evidence from ChinaYi Zhang0https://orcid.org/0000-0002-3585-9590Weijun Liang1https://orcid.org/0009-0007-9406-9883Yongfu Liang2School of Economics, Guangdong University of Technology , Guangzhou, Guangdong, People’s Republic of China; Key Laboratory of Digital Economy and Data Governance, Guangdong University of Technology , Guangzhou, Guangdong, People’s Republic of ChinaSchool of Economics, Guangdong University of Technology , Guangzhou, Guangdong, People’s Republic of ChinaSchool of Economics, Guangdong University of Technology , Guangzhou, Guangdong, People’s Republic of China; Key Laboratory of Digital Economy and Data Governance, Guangdong University of Technology , Guangzhou, Guangdong, People’s Republic of ChinaAs 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.https://doi.org/10.1088/2515-7620/adecebair pollutionlabour productivityspatial Durbin modelspatial spilloversmicroenterprises
spellingShingle Yi Zhang
Weijun Liang
Yongfu Liang
Air pollution and labour productivity: firm-level spatial evidence from China
Environmental Research Communications
air pollution
labour productivity
spatial Durbin model
spatial spillovers
microenterprises
title Air pollution and labour productivity: firm-level spatial evidence from China
title_full Air pollution and labour productivity: firm-level spatial evidence from China
title_fullStr Air pollution and labour productivity: firm-level spatial evidence from China
title_full_unstemmed Air pollution and labour productivity: firm-level spatial evidence from China
title_short Air pollution and labour productivity: firm-level spatial evidence from China
title_sort air pollution and labour productivity firm level spatial evidence from china
topic air pollution
labour productivity
spatial Durbin model
spatial spillovers
microenterprises
url https://doi.org/10.1088/2515-7620/adeceb
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AT weijunliang airpollutionandlabourproductivityfirmlevelspatialevidencefromchina
AT yongfuliang airpollutionandlabourproductivityfirmlevelspatialevidencefromchina