The effect of pollen exposure on consumption behaviors: Evidence from home scanner data

Although seasonal allergies caused by airborne pollen are detrimental to physical and mental health and impair daily activities, their social cost is rarely discussed in the economics literature. Large amounts of airborne pollen can increase healthcare costs, reduce worker productivity, and force people to stay at home, thereby stagnating economic activity. This study uses daily purchase records from scanner data to investigate the effect of pollen exposure on consumption behavior. Exploiting the daily variation in the pollen counts at 120 observation stations in Japan, I find that consumption expenditure decreases by about 2% on days when airborne pollen is unusually high. Estimates using lagged consumption expenditures show that the reduction in consumption due to high pollen exposure lasts for more than a week. Furthermore, estimates using weekly and monthly panel data also indicate a pollen-induced decrease in consumption. This finding suggests that exposure to pollen may reduce total expenditure as opposed to merely delaying spending. It highlights the overlooked economic burden of pollen and seasonal allergies. Hence, urban planning to reduce airborne pollen and health policies to address seasonal allergies are crucial.