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The Power of Perception: Limitations of Information in Reducing Air Pollution Exposure

Author

Listed:
  • Hanna, Rema
  • Hoffmann, Bridget
  • Oliva, Paulina
  • Schneider, Jake

Abstract

We conduct a randomized controlled trial in Mexico City to determine willingness to pay (WTP) for SMS air quality alerts and to study the effects of air quality alerts, reminders, and a reusable N95 mask on air pollution information and avoidance behavior. At baseline, we elicit WTP for the alerts service after revealing whether the household will receive an N95 mask and participant compensation, but before revealing whether they will receive alert or reminder services. While we observe no significant impact of mask provision on WTP, higher compensation increases WTP, suggesting a possible cash-on-hand constraint. The perception of high pollution days prior to the survey is positively correlated with WTP, but the presence of actual high pollution days is not correlated with WTP. Follow-up survey data demonstrate that the alerts treatment increases reporting of receiving air pollution information via SMS, a high pollution day in the past week, and staying indoors on the most recent perceived high pollution day. However, we observe no significant effect on the ability to correctly identify which specific days had high pollution. Similarly, households that received an N95 mask are more likely to report utilizing a mask with filter in the past two weeks, but we observe no effect on using a filter mask on the specific days with high particulate matter. Although we nd that air quality alerts increased the salience of air quality and avoidance behavior, these results illustrate the difficulty that information treatments face in overcoming perceptions to effectively reduce exposure to air pollution.

Suggested Citation

  • Hanna, Rema & Hoffmann, Bridget & Oliva, Paulina & Schneider, Jake, 2021. "The Power of Perception: Limitations of Information in Reducing Air Pollution Exposure," IDB Publications (Working Papers) 11387, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:11387
    DOI: http://dx.doi.org/10.18235/0003392
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    Citations

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    Cited by:

    1. Bridget Hoffmann & Juan Pablo Rud, 2022. "Exposure or Income? The Unequal Effects of Pollution on Daily Labor Supply," Working Papers 109, Red Nacional de Investigadores en Economía (RedNIE).
    2. Lohmann, Paul M. & Gsottbauer, Elisabeth & You, Jing & Kontoleon, Andreas, 2023. "Air pollution and anti-social behaviour: Evidence from a randomised lab-in-the-field experiment," Social Science & Medicine, Elsevier, vol. 320(C).
    3. Hoffmann, Bridget & Rud, Juan Pablo, 2022. "Exposure or Income? The Unequal Effects of Pollution on Daily Labor Supply," IDB Publications (Working Papers) 11985, Inter-American Development Bank.

    More about this item

    Keywords

    Mexico; Information; Randomized Control Trial; Air pollution; willingness to pay; Alerts; Avoidance behavior;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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