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Days of haze: Environmental information disclosure and intertemporal avoidance behavior

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  • Graff Zivin, Joshua
  • Neidell, Matthew

Abstract

In this paper, we investigate the dynamics of informational regulatory approaches by analyzing the impact of smog alerts issued on consecutive days on discretionary outdoor activities in Southern California. Short-run adjustments t o transitory risk entail costs that are likely to influence the set of evasive actions pursued by those at risk. Our results confirm that the cost of intertemporally substituting activities is increasing over time: when alerts are issued on 2 successive days, any response on the first day has largely disappeared by the second day. Small reprieves from alerts, however, reset these costs.

Suggested Citation

  • Graff Zivin, Joshua & Neidell, Matthew, 2009. "Days of haze: Environmental information disclosure and intertemporal avoidance behavior," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 119-128, September.
    • Handle: RePEc:eee:jeeman:v:58:y:2009:i:2:p:119-128
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    More about this item

    Keywords

    Avoidance behavior Information Ozone Air quality;

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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