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Extreme heat in the workplace: Catalyst or barrier to safety management?

Author

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  • Ji, Fei
  • Liang, Weiming
  • Pei, Zini

Abstract

Extreme weather profoundly influences the resource allocation and operational decisions of micro-economic agents. Using data from Chinese A-share listed companies between 2011 and 2021, combined with meteorological records from the US National Centers for Environmental Information, this study shows a significant decline in occupational health and safety management system implementation among enterprises exposed to extreme heat. Mechanism analysis indicates that this decline is primarily driven by heightened financing constraints and rising labor costs caused by extreme heat. Further investigation shows that the inhibitory effect of extreme heat on occupational health and safety management system implementation is particularly pronounced among non-state-owned enterprises, manufacturing firms, companies with low-quality social responsibility disclosures, and those operating in regions with weak labor protection capacity. In addition, the findings demonstrate that extreme heat simultaneously diminishes the quality of corporate human resources and internal cash flows, further underscoring its threat to sustainable enterprise development.

Suggested Citation

  • Ji, Fei & Liang, Weiming & Pei, Zini, 2026. "Extreme heat in the workplace: Catalyst or barrier to safety management?," Economic Analysis and Policy, Elsevier, vol. 92(C), pages 484-497.
    • Handle: RePEc:eee:ecanpo:v:92:y:2026:i:c:p:484-497
    DOI: 10.1016/j.eap.2026.06.009
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