Bracht, Felix and Verhoeven, Dennis (2021) Air pollution and innovation. CEP Discussion Papers (1817). Centre for Economic Performance, LSE, London, UK.
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Abstract
Existing estimates of the economic costs of air pollution do not account for its effect on inventive output. Using two weather phenomena as instruments, we estimate this effect in a sample of 1,288 European regions. A decrease in exposure to small particulate matter of 0.17µg/m3 - the average yearly reduction in Europe - leads to 1.7% more patented inventions. After ruling out reallocation of human capital, inventor mortality and R&D expenditures as drivers of the effect, we conclude that air pollution's harm to economic output increases by at least 10% when accounting for innovation.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | https://cep.lse.ac.uk/_new/publications/discussion... |
| Additional Information: | © 2021 The Authors |
| Divisions: | Centre for Economic Performance |
| Subjects: | G Geography. Anthropology. Recreation > GE Environmental Sciences H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor |
| JEL classification: | O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products |
| Date Deposited: | 24 Feb 2022 15:00 |
| Last Modified: | 11 Dec 2024 19:39 |
| URI: | http://eprints.lse.ac.uk/id/eprint/113818 |
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