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Air Pollution and Education Investment

Author

Listed:
  • Cheng, Zhiming

    (University of New South Wales)

  • Guo, Liwen

    (University of New South Wales)

  • Tani, Massimiliano

    (University of New South Wales)

  • Cook, Sarah

    (University of Nottingham)

Abstract

Our study focuses on exploring the impact of air pollution on household investment in children's education in China. Air pollution poses a significant risk to some cities in northern China. We have used panel data from secondary schools in Shandong Province in 2017 and 2020 and discovered that a rise of one standard deviation of PM2.5 leads to a 9.6-44.6 percentage point decrease in the likelihood of parents spending on their children's education. The impact of air pollution on household education investment is mediated by parents' and children's educational expectations and household incomes. Our findings also indicate that high school students are more likely to receive higher education investment than middle school students, even at the same level of air pollution. The results of our study suggest that air pollution can lead to a decrease in human capital accumulation due to changes in parental behaviors induced by air pollution.

Suggested Citation

  • Cheng, Zhiming & Guo, Liwen & Tani, Massimiliano & Cook, Sarah, 2023. "Air Pollution and Education Investment," IZA Discussion Papers 16322, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16322
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    References listed on IDEAS

    as
    1. Acemoglu, Daron & Pischke, J. -S., 2001. "Changes in the wage structure, family income, and children's education," European Economic Review, Elsevier, vol. 45(4-6), pages 890-904, May.
    2. Liu, Fengqi & Kang, Yuxin & Guo, Kun & Sun, Xiaolei, 2021. "The relationship between air pollution, investor attention and stock prices: Evidence from new energy and polluting sectors," Energy Policy, Elsevier, vol. 156(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    air pollution; education investment; China;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • I20 - Health, Education, and Welfare - - Education - - - General
    • D10 - Microeconomics - - Household Behavior - - - General

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