IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i5p1855-d326881.html
   My bibliography  Save this article

The Impact of Ambient Fine Particulate Matter on Consumer Expenditures

Author

Listed:
  • Hojin Jung

    (College of Business Administration, Hongik University, 94 Wausan-ro, Mapo-gu, Seoul 131-791, Korea)

Abstract

Airborne particulate matter suspended from industrial facilities, power plants, and automobiles is detrimental to health. Growing concerns about the increasing level of airborne particulate matter have led many industrialized nations to advocate for the transformation of the energy market and investment in sustainable energy products. At the other end, consumers have made individual adjustments and attempted to reduce the exposure to the particulate matter. In this paper, we focus on the effect of ambient air pollution on consumer expenditures based on scanner panel data on consumers’ debit and credit card transactions. A series of empirical analyses found robust evidence that the increased level of particulate matter led to considerable disruption in total consumer expenditures with significant heterogeneity across categories. Our findings suggest that consumers alter their spending behaviors in an attempt to reduce the risk of exposures to particulate matter. Such an estimated effect of air pollution is qualitatively different from those of other macroeconomic factors and provides important guidance for policy interventions and practical decisions aimed at sustaining economic growth.

Suggested Citation

  • Hojin Jung, 2020. "The Impact of Ambient Fine Particulate Matter on Consumer Expenditures," Sustainability, MDPI, vol. 12(5), pages 1-13, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:1855-:d:326881
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/5/1855/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/5/1855/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kumar, V. & Leone, Robert P. & Gaskins, John N., 1995. "Aggregate and disaggregate sector forecasting using consumer confidence measures," International Journal of Forecasting, Elsevier, vol. 11(3), pages 361-377, September.
    2. Smith, Kirk R. & Apte, Michael G. & Yuqing, Ma & Wongsekiarttirat, Wathana & Kulkarni, Ashwini, 1994. "Air pollution and the energy ladder in asian cities," Energy, Elsevier, vol. 19(5), pages 587-600.
    3. Allenby, Greg M & Jen, Lichung & Leone, Robert P, 1996. "Economic Trends and Being Trendy: The Influence of Consumer Confidence on Retail Fashion Sales," Journal of Business & Economic Statistics, American Statistical Association, vol. 14(1), pages 103-111, January.
    4. Dora Gicheva & Justine Hastings & Sofia Villas-Boas, 2010. "Investigating Income Effects in Scanner Data: Do Gasoline Prices Affect Grocery Purchases?," American Economic Review, American Economic Association, vol. 100(2), pages 480-484, May.
    5. Hojin Jung & Minjae Park & Kihoon Hong & Eunjung Hyun, 2016. "The Impact of an Epidemic Outbreak on Consumer Expenditures:An Empirical Assessment for MERS Korea," Sustainability, MDPI, vol. 8(5), pages 1-15, May.
    6. Youngdon Kim & Woojae Myung & Hong-Hee Won & Sanghong Shim & Hong Jin Jeon & Junbae Choi & Bernard J Carroll & Doh Kwan Kim, 2015. "Association between Air Pollution and Suicide in South Korea: A Nationwide Study," PLOS ONE, Public Library of Science, vol. 10(2), pages 1-10, February.
    7. Hojin Jung, 2017. "Investigating the unobserved heterogeneity in consumers’ sensitivity to the price of gasoline," Marketing Letters, Springer, vol. 28(3), pages 477-490, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jewan Ryu & Heekyung Park, 2022. "Band-Sensitive Calibration of Low-Cost PM2.5 Sensors by LSTM Model with Dynamically Weighted Loss Function," Sustainability, MDPI, vol. 14(10), pages 1-17, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hojin Jung & Minjae Park & Kihoon Hong & Eunjung Hyun, 2016. "The Impact of an Epidemic Outbreak on Consumer Expenditures:An Empirical Assessment for MERS Korea," Sustainability, MDPI, vol. 8(5), pages 1-15, May.
    2. Hojin Jung, 2020. "Economic effects of ambient air pollution on consumer shopping behaviors," Economics and Business Letters, Oviedo University Press, vol. 9(3), pages 255-264.
    3. Lemmens, A. & Croux, C. & Dekimpe, M.G., 2005. "The European Consumer: United In Diversity?," ERIM Report Series Research in Management ERS-2005-022-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Hunneman, Auke & Verhoef, Peter C. & Sloot, Laurens M., 2015. "The Impact of Consumer Confidence on Store Satisfaction and Share of Wallet Formation," Journal of Retailing, Elsevier, vol. 91(3), pages 516-532.
    5. Paradiso, Antonio & Kumar, Saten & Margani, Patrizia, 2014. "Are Italian consumer confidence adjustments asymmetric? A macroeconomic and psychological motives approach," Journal of Economic Psychology, Elsevier, vol. 43(C), pages 48-63.
    6. Marnik G. Dekimpe & Barbara Deleersnyder, 2018. "Business cycle research in marketing: a review and research agenda," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 31-58, January.
    7. Lemmens, A. & Croux, C. & Dekimpe, M.G., 2007. "Consumer confidence in Europe : United in diversity," Other publications TiSEM ea8c3268-2c0b-4fcc-9d4a-6, Tilburg University, School of Economics and Management.
    8. Andrews, Margaret S. & Bhatta, Rhea & Ver Ploeg, Michele, 2012. "Did the American Recovery and Reinvestment Act Increase in SNAP Benefits Reduce the Impact of Food Deserts?," 2012 AAEA/EAAE Food Environment Symposium 123520, Agricultural and Applied Economics Association.
    9. Eunae Jung & Hyungun Sung, 2017. "The Influence of the Middle East Respiratory Syndrome Outbreak on Online and Offline Markets for Retail Sales," Sustainability, MDPI, vol. 9(3), pages 1-23, March.
    10. Yoon-Sun Jung & Ki-Beom Kim & Seok-Jun Yoon, 2020. "Factors Associated with Regional Years of Life Lost (YLLs) due to Suicide in South Korea," IJERPH, MDPI, vol. 17(14), pages 1-9, July.
    11. Ahmed Moustapha Mfokeu & Elie Virgile Chrysostome & Jean-Pierre Gueyie & Olivier Ebenezer Mun Ngapna, 2023. "Consumer Motivation behind the Use of Ecological Charcoal in Cameroon," Sustainability, MDPI, vol. 15(3), pages 1-22, January.
    12. Jasper Grashuis & Theodoros Skevas & Michelle S. Segovia, 2020. "Grocery Shopping Preferences during the COVID-19 Pandemic," Sustainability, MDPI, vol. 12(13), pages 1-10, July.
    13. Ibidun O. Adelekan & Afeikhena T. Jerome, 2006. "Dynamics of household energy consumption in a traditional African city, Ibadan," Environment Systems and Decisions, Springer, vol. 26(2), pages 99-110, June.
    14. Tian, Jianchi & Li, Yang & Sun, Yan & Yang, Bo & Chen, Xuefeng, 2024. "Warming climate apathy to mitigate the disparity in climate policy support across distinct income strata," Energy Policy, Elsevier, vol. 192(C).
    15. Stéphane Couture & Serge Garcia & Arnaud Reynaud, 2009. "Household Energy Choices and Fuelwood Consumption: An Econometric Approach to the French Data," LERNA Working Papers 09.08.284, LERNA, University of Toulouse.
    16. Lamey, L. & Deleersnyder, B. & Dekimpe, M.G. & Steenkamp, J-B.E.M., 2005. "The Impact of Business-Cycle Fluctuations on Private-Label Share," ERIM Report Series Research in Management ERS-2005-061-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    17. Gikas A. Hardouvelis & Dimitrios D. Thomakos, 2007. "Consumer Confidence and Elections," Working Paper series 42_07, Rimini Centre for Economic Analysis.
    18. Mieczysław Szyszkowicz & Roger Zemek & Ian Colman & William Gardner & Termeh Kousha & Marc Smith-Doiron, 2020. "Air Pollution and Emergency Department Visits for Mental Disorders among Youth," IJERPH, MDPI, vol. 17(12), pages 1-13, June.
    19. Rebecca L. C. Taylor, 2020. "A Mixed Bag: The Hidden Time Costs of Regulating Consumer Behavior," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 7(2), pages 345-378.
    20. Keaton Miller & Boyoung Seo, 2021. "The Effect of Cannabis Legalization on Substance Demand and Tax Revenues," National Tax Journal, University of Chicago Press, vol. 74(1), pages 107-145.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:1855-:d:326881. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.