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The impact of air pollution on movie theater admissions

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  • He, Xiaobo
  • Luo, Zijun
  • Zhang, Junjie

Abstract

We provide new evidence of pollution avoidance in the movie theater market. Our analysis is based on a unique dataset of high-frequency movie ticket sales in China at the movie- and city-level during 2012–2014. We estimate that one pollution day reduces the market share of a movie by 2.26%, other things being equal. The effect is mainly through ambient pollution exposure during transportation to the theater. On average, popular movies are inelastic to air pollution. However, as air quality deteriorates, even blockbuster movies start to suffer a box-office loss during the heavy pollution episodes.

Suggested Citation

  • He, Xiaobo & Luo, Zijun & Zhang, Junjie, 2022. "The impact of air pollution on movie theater admissions," Journal of Environmental Economics and Management, Elsevier, vol. 112(C).
    • Handle: RePEc:eee:jeeman:v:112:y:2022:i:c:s0095069622000134
    DOI: 10.1016/j.jeem.2022.102626
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    Cited by:

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    2. Zhao, Xiaolei & Zhao, Ziyao & Mao, Yumeng & Li, Xuemei, 2024. "The role of air pollution in electric vehicle adoption: Evidence from China," Transport Policy, Elsevier, vol. 154(C), pages 26-39.
    3. Guo, Feng & Lin, Zhiyuan & Lyu, Xiaoliang & Shi, Qingling, 2023. "Does air pollution influence music sentiment? Measuring music sentiment by machine learning," Journal of Asian Economics, Elsevier, vol. 87(C).
    4. Fitzgerald, Brooke A., 2024. "The Price of Staying In: Estimating Wildfire Smoke Avoidance Costs Using Comprehensive US Spending Data," 2024 Annual Meeting, July 28-30, New Orleans, LA 343775, Agricultural and Applied Economics Association.
    5. Xi, Chen & Xie, Wei & Chen, Xiaoguang & He, Pan, 2023. "Weather shocks and movie recreation demand in China," Energy Economics, Elsevier, vol. 127(PB).
    6. Wang, Weilong & Xiao, Deheng & Wang, Jianlong & Wu, Haitao, 2024. "The cost of pollution in the digital era: Impediments of air pollution on enterprise digital transformation," Energy Economics, Elsevier, vol. 134(C).
    7. Roy, Suvra & Nguyen, Harvey & Visaltanachoti, Nuttawat, 2023. "Be nice to the air: Severe haze pollution and mutual fund risk," Global Finance Journal, Elsevier, vol. 58(C).
    8. Wang, Weilong & Wang, Jianlong & Ye, Huiying & Wu, Haitao, 2024. "Polluted air, smarter factories? China's robot imports shed light on a potential link," Energy Economics, Elsevier, vol. 134(C).
    9. Syed Hasan & Odmaa Narantungalag, & Martin Berka, 2022. "No pain, no gain? Mining pollution and morbidity," Discussion Papers 2203, School of Economics and Finance, Massey University, New Zealand.
    10. Xianru Han & Wenying Li & Haoluan Wang, 2024. "A Burning Issue: Wildfire Smoke Exposure, Retail Sales, and Demand for Adaptation in Healthcare," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(11), pages 3011-3039, November.
    11. Ahmad, Husnain F. & Gibson, Matthew & Nadeem, Fatiq & Nasim, Sanval & Rezaee, Arman, 2022. "Forecasts: Consumption, Production, and Behavioral Responses," IZA Discussion Papers 15831, Institute of Labor Economics (IZA).
    12. Fan, Yichun, 2024. "Social cost of lifestyle adaptation: Air pollution and outdoor physical exercise," Journal of Environmental Economics and Management, Elsevier, vol. 127(C).

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    More about this item

    Keywords

    Air pollution; Theatrical market; Pollution avoidance;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • 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

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