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Air pollution and education investment

Author

Listed:
  • Guo, Liwen
  • Cheng, Zhiming
  • Tani, Massimiliano
  • Cook, Sarah

Abstract

Our study examines the impact of air pollution on household investment in children's education. We use panel data from secondary schools in Shandong Province in China and find that a one-unit increase in PM2.5 concentration leads to a decrease in the probability of parental investment in their children's education by 3.9 percentage points. Factors such as educational expectations, financial considerations and personal well-being will mediate this impact. Additionally, our results suggest that education level and living area may moderate the relationship between air pollution and educational investment. These findings imply that air pollution may undermine human capital development due to alterations in parental investment behavior prompted by environmental conditions.

Suggested Citation

  • Guo, Liwen & Cheng, Zhiming & Tani, Massimiliano & Cook, Sarah, 2024. "Air pollution and education investment," Energy Economics, Elsevier, vol. 132(C).
    • Handle: RePEc:eee:eneeco:v:132:y:2024:i:c:s0140988324002044
    DOI: 10.1016/j.eneco.2024.107496
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    References listed on IDEAS

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    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).
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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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