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Air pollution kills competition: Evidence from eSports

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  • Mo, Jiawei
  • Wu, Zenan
  • Yuan, Ye

Abstract

This article investigates how environmental adversity affects competitive performance in cognitive-intensive settings. Using a comprehensive dataset of professional eSports tournaments and match-hour variation of fine particulate matters, we find robust evidence that pollution kills competition. Specifically, higher air pollution levels diminish the performance and winning odds of the weaker team in a matchup while boosting that of the stronger team, widening the gap between them. We document two operating channels: (i) pollution leads to heterogeneous performance-reducing effects contingent on a team’s relative strength against their opponent, rather than its absolute competitiveness; and (ii) a weaker team adjusts their strategic decision-making differently in a polluted environment compared to their stronger counterparts. Our findings elucidate the distributional impact of environmental adversity and underscore its influence on strategic decision-making.

Suggested Citation

  • Mo, Jiawei & Wu, Zenan & Yuan, Ye, 2023. "Air pollution kills competition: Evidence from eSports," Journal of Environmental Economics and Management, Elsevier, vol. 122(C).
    • Handle: RePEc:eee:jeeman:v:122:y:2023:i:c:s0095069623001043
    DOI: 10.1016/j.jeem.2023.102886
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    Cited by:

    1. Qian Zhang & Linlin Sun & Jian Xu, 2024. "Can the sports industry foster the transition to net-zero and green growth?," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-16, June.

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    More about this item

    Keywords

    Air pollution; Competition; Strategic interaction;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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