NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Fresh Air Eases Work - The Effect of Air Quality on Individual Investor Activity

Steffen Meyer, Michaela Pagel

NBER Working Paper No. 24048
Issued in November 2017
NBER Program(s):Asset Pricing Program, Environment and Energy Program, Health Economics Program

This paper shows that air quality has a significantly negative effect on the likelihood of individual investors to sit down, log in, and trade in their brokerage accounts controlling for investor-, weather-, traffic-, and market-specific factors. In perspective, a one standard deviation increase in fine particulate matter leads to the same reduction in the probability of logging in and trading as a one standard deviation increase in sunshine. We document this effect for low levels of pollution that are commonly found throughout the developed world. As individual investor trading can be a proxy for everyday cognitively-demanding tasks such as office work, our findings suggest that the negative effects of pollution on white-collar work productivity are much more severe than previously thought. To our knowledge, this is the first study to demonstrate a negative impact of pollution on a measure of white-collar productivity at the individual level in a western country.

download in pdf format
   (796 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w24048

Users who downloaded this paper also downloaded* these:
Gneezy, List, Livingston, Sadoff, Qin, and Xu w24004 Measuring Success in Education: The Role of Effort on the Test Itself
Bloom, Jones, Van Reenen, and Webb w23782 Are Ideas Getting Harder to Find?
Heyes, Neidell, and Saberian w22753 The Effect of Air Pollution on Investor Behavior: Evidence from the S&P 500
Chen, Oliva, and Zhang w24036 The Effect of Air Pollution on Migration: Evidence from China
Deryugina and Hsiang w24072 The Marginal Product of Climate
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us