Does severe air pollution affect firm innovation: evidence from China
This study investigates the influence of air pollution on firm innovation by using Chinese listed firms. Our results indicate that firms headquartered in a city with severe air pollution tend to engage less in innovation activities. To more explicitly identify causality, we establish a 2SLS where th...
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| Veröffentlicht in: | Applied economics letters 2021-04, Vol.28 (7), p.551-558 |
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| container_title | Applied economics letters |
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| creator | Wang, Li Xing, Fei Yu, Yishan Dai, Yunhao |
| description | This study investigates the influence of air pollution on firm innovation by using Chinese listed firms. Our results indicate that firms headquartered in a city with severe air pollution tend to engage less in innovation activities. To more explicitly identify causality, we establish a 2SLS where the air quality is instrumented by the local thermal inversions. This negative effect is primarily driven by brain drain channels, specifically the migration of highly skilled employees. In addition, such a negative effect is more pronounced for firms with low employee salaries and those belonging to competitive industries. The results are robust to a variety of model specifications and alternative measures. |
| doi_str_mv | 10.1080/13504851.2020.1764474 |
| format | Article |
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Our results indicate that firms headquartered in a city with severe air pollution tend to engage less in innovation activities. To more explicitly identify causality, we establish a 2SLS where the air quality is instrumented by the local thermal inversions. This negative effect is primarily driven by brain drain channels, specifically the migration of highly skilled employees. In addition, such a negative effect is more pronounced for firms with low employee salaries and those belonging to competitive industries. 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The results are robust to a variety of model specifications and alternative measures.</description><subject>Air</subject><subject>Air pollution</subject><subject>Air quality</subject><subject>Brain drain</subject><subject>Causality</subject><subject>Companies</subject><subject>Economic analysis</subject><subject>Economic theory</subject><subject>Economics</subject><subject>firm innovation</subject><subject>human capital</subject><subject>Innovations</subject><subject>Outdoor air quality</subject><subject>Skilled workers</subject><issn>1350-4851</issn><issn>1466-4291</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2021</creationdate><recordtype>article</recordtype><recordid>eNp9kE1LAzEQhoMoWKs_QQh43prsZvPhSan1AwpeFLyFbDbBlN2kJttK_71ZW_HmaYbheWfeeQG4xGiGEUfXuKoR4TWelajMI0YJYeQITDChtCClwMe5z0wxQqfgLKUVQohyQSdgcR9MgslsTTRQuQjXoes2gwseKmuNHqB1sYfO-7BV4_gGmq1rjdcG2hh6OP9wXp2DE6u6ZC4OdQreHhav86di-fL4PL9bFpqUfCgEaQ0znGKMiUAaE9tyZrM1g5jQVAjesNY0NcOI0AZbLspGaF5Zmt3ymlVTcLXfu47hc2PSIFdhE30-Kcs6P084_qHqPaVjSCkaK9fR9SruJEZyTEz-JibHxOQhsayDe53Rwbv0p2J1TUtakveM3O4R522IvfoKsWvloHZdiDYqr7Os-v_KNzAVeu8</recordid><startdate>20210416</startdate><enddate>20210416</enddate><creator>Wang, Li</creator><creator>Xing, Fei</creator><creator>Yu, Yishan</creator><creator>Dai, Yunhao</creator><general>Routledge</general><general>Taylor & Francis LLC</general><scope>OQ6</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20210416</creationdate><title>Does severe air pollution affect firm innovation: evidence from China</title><author>Wang, Li ; Xing, Fei ; Yu, Yishan ; Dai, Yunhao</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c428t-94de7e86111490c14fd87f135e079c6998b7deb571046b1f892b9c83f60688573</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2021</creationdate><topic>Air</topic><topic>Air pollution</topic><topic>Air quality</topic><topic>Brain drain</topic><topic>Causality</topic><topic>Companies</topic><topic>Economic analysis</topic><topic>Economic theory</topic><topic>Economics</topic><topic>firm innovation</topic><topic>human capital</topic><topic>Innovations</topic><topic>Outdoor air quality</topic><topic>Skilled workers</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Wang, Li</creatorcontrib><creatorcontrib>Xing, Fei</creatorcontrib><creatorcontrib>Yu, Yishan</creatorcontrib><creatorcontrib>Dai, Yunhao</creatorcontrib><collection>ECONIS</collection><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Applied economics letters</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Wang, Li</au><au>Xing, Fei</au><au>Yu, Yishan</au><au>Dai, Yunhao</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Does severe air pollution affect firm innovation: evidence from China</atitle><jtitle>Applied economics letters</jtitle><date>2021-04-16</date><risdate>2021</risdate><volume>28</volume><issue>7</issue><spage>551</spage><epage>558</epage><pages>551-558</pages><issn>1350-4851</issn><eissn>1466-4291</eissn><abstract>This study investigates the influence of air pollution on firm innovation by using Chinese listed firms. Our results indicate that firms headquartered in a city with severe air pollution tend to engage less in innovation activities. To more explicitly identify causality, we establish a 2SLS where the air quality is instrumented by the local thermal inversions. This negative effect is primarily driven by brain drain channels, specifically the migration of highly skilled employees. In addition, such a negative effect is more pronounced for firms with low employee salaries and those belonging to competitive industries. The results are robust to a variety of model specifications and alternative measures.</abstract><cop>London</cop><pub>Routledge</pub><doi>10.1080/13504851.2020.1764474</doi><tpages>8</tpages></addata></record> |
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| ispartof | Applied economics letters, 2021-04, Vol.28 (7), p.551-558 |
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| language | eng |
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| source | Business Source Complete |
| subjects | Air Air pollution Air quality Brain drain Causality Companies Economic analysis Economic theory Economics firm innovation human capital Innovations Outdoor air quality Skilled workers |
| title | Does severe air pollution affect firm innovation: evidence from China |
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