Air Pollution and Entrepreneurship. A new GLO Discussion Paper by GLO Fellows Liwen Guo, Zhiming Cheng, Massimiliano Tani & Xi Chen and colleagues.

Discussion Paper, News, Post, Post-22

A new GLO Discussion Paper finds that suggests that exposure to higher intensity of air pollution in China lowers one’s proclivity for entrepreneurship.

GLO Discussion Paper No. 1208, 2022

Air Pollution and Entrepreneurship – Download PDF
by Guo, Liwen & Cheng, Zhiming & Tani, Massimiliano & Cook, Sarah & Zhao, Jiaqi & Chen, Xi

GLO Fellows Liwen Guo, Zhiming Cheng, Massimiliano Tani & Xi Chen

Liwen Guo
Zhiming Cheng
Max Tani
Xi Chen

Author Abstract: We examine the causal effect of air pollution on an individual’s propensity for entrepreneurship in China. Our preferred model, which employs an instrumental variable approach to address endogeneity arising from sorting into entrepreneurship and locational choices, suggests that exposure to higher intensity of air pollution lowers one’s proclivity for entrepreneurship. A one standard deviation increase in air pollution leads to a 21.2% decrease in the propensity for entrepreneurship. We also find that self-efficacy is a channel in the relationship between air pollution and entrepreneurship. In addition, education moderates the relationship between air pollution and self-efficacy.

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PUBLISHED
Vol. 36, Issue 1, January 2023: Journal of Population Economics (JOPE) 16 articles. https://link.springer.com/journal/148/volumes-and-issues/36-1
Watch the videos of article presentations on December 1, 2022 during the GLO Global Conference 2022.

JOPE has CiteScore 6.5 (2021, LINK) & Impact Factor 4.7 (2021, LINK)

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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