We study how air pollution affects firm dynamics: entry, exit, innovation, and (aggregate) productivity. Using an instrumental variable strategy, we find that air pollution significantly reduces entry and innovation and raises exit. Moreover, air pollution leaves firms with higher productivity...

We provide the first theoretical and empirical study on how the carbon emission regulation affects firm dynamics, including entry, exit, and innovation. Using a difference-in-difference-in-differences empirical strategy, we find that in low-carbon zone pilot cities, in carbon-intensive sectors,...

This paper estimates the monetary value of cutting PM2.5, a dominant source of air pollution in China. By matching hedonic happiness in a nationally representative survey with daily air quality data according to exact dates and locations of interviews in China, we are able to estimate the...

Existing studies that evaluate the impact of pollution on human beings understate its negative effect on cognition, mental health, and happiness. This paper attempts to fill in the gap via investigating the impact of air quality on subjective well-being using China as an example. By matching a...

This paper studies the impact of six main air pollutants on three key dimensions of subjective well-being (SWB) - life satisfaction, hedonic happiness and mental health. We match a nationally representative survey in China with local air quality and rich weather conditions according to the exact...

While there is a large body of literature on the negative health effects of air pollution, there is much less written about its effects on cognitive performance for the whole population. This paper studies the effects of contemporaneous and cumulative exposure to air pollution on cognitive...