IDEAS home Printed from https://ideas.repec.org/p/awe/wpaper/452.html
   My bibliography  Save this paper

Effect of Air Pollution on Cognitive Performance in India

Author

Listed:
  • Damini Singh
  • Indrani Gupta

    (Institute of Economic Growth, Delhi University, Delhi)

  • Sagnik Dey

Abstract

This paper provides a causal estimate of the contemporaneous impact of outdoor air pollution on cognitive and academic performance of children aged 8-11 years in India by combining satellite PM2.5 data with the two rounds of Indian Human Development Survey. Our identification strategy relies on the use of thermal inversions as an instrument that generates exogenous variation in the pollution levels. Results show that exposure to average PM2.5 concentrations in the past 12 months prior to the month of test taken by the children has a significant detrimental impact on their cognitive ability in India. Specifically, a 1 µg/m3 increase in average PM2.5 concentrations in the past 12 months decreases the math performance by 10-16 percentage points and the reading performance by 7-9 percentage points. We also find that there is a significant fall in the combined agestandardised cognitive score. The results imply that the cost of air pollution in India is much higher than estimated, and a narrow focus on health-related outcomes understate the magnitude of negative impact of pollution, as mental acuity is essential for higher productivity of children.

Suggested Citation

  • Damini Singh & Indrani Gupta & Sagnik Dey, 2022. "Effect of Air Pollution on Cognitive Performance in India," IEG Working Papers 452, Institute of Economic Growth.
    • Handle: RePEc:awe:wpaper:452
    as

    Download full text from publisher

    File URL: https://iegindia.org/upload/publication/Workpap/wp452.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Michael Greenstone & Rema Hanna, 2014. "Environmental Regulations, Air and Water Pollution, and Infant Mortality in India," American Economic Review, American Economic Association, vol. 104(10), pages 3038-3072, October.
    2. Adam Isen & Maya Rossin-Slater & W. Reed Walker, 2017. "Every Breath You Take—Every Dollar You’ll Make: The Long-Term Consequences of the Clean Air Act of 1970," Journal of Political Economy, University of Chicago Press, vol. 125(3), pages 848-902.
    3. James Archsmith & Anthony Heyes & Soodeh Saberian, 2018. "Air Quality and Error Quantity: Pollution and Performance in a High-Skilled, Quality-Focused Occupation," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(4), pages 827-863.
    4. Bharadwaj, Prashant & Johnsen, Julian V. & Løken, Katrine V., 2014. "Smoking bans, maternal smoking and birth outcomes," Journal of Public Economics, Elsevier, vol. 115(C), pages 72-93.
    5. Victor Lavy & Avraham Ebenstein & Sefi Roth, 2014. "The Impact of Short Term Exposure to Ambient Air Pollution on Cognitive Performance and Human Capital Formation," NBER Working Papers 20648, National Bureau of Economic Research, Inc.
    6. O'Brien, Rourke L. & Neman, Tiffany & Rudolph, Kara & Casey, Joan & Venkataramani, Atheendar, 2018. "Prenatal exposure to air pollution and intergenerational economic mobility: Evidence from U.S. county birth cohorts," Social Science & Medicine, Elsevier, vol. 217(C), pages 92-96.
    7. Tom Y. Chang & Joshua Graff Zivin & Tal Gross & Matthew Neidell, 2019. "The Effect of Pollution on Worker Productivity: Evidence from Call Center Workers in China," American Economic Journal: Applied Economics, American Economic Association, vol. 11(1), pages 151-172, January.
    8. Marcotte, Dave E., 2017. "Something in the air? Air quality and children's educational outcomes," Economics of Education Review, Elsevier, vol. 56(C), pages 141-151.
    9. Teresa Molina, 2021. "Pollution, Ability, and Gender-Specific Investment Responses to Shocks," Journal of the European Economic Association, European Economic Association, vol. 19(1), pages 580-619.
    10. Jiaxiu He & Haoming Liu & Alberto Salvo, 2019. "Severe Air Pollution and Labor Productivity: Evidence from Industrial Towns in China," American Economic Journal: Applied Economics, American Economic Association, vol. 11(1), pages 173-201, January.
    11. Janet Currie & Tom Vogl, 2013. "Early-Life Health and Adult Circumstance in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 1-36, May.
    12. Chen, Xi & Zhang, Xiaobo & Zhang, Xin, 2017. "Smog in Our Brains: Gender Differences in the Impact of Exposure to Air Pollution on Cognitive Performance," GLO Discussion Paper Series 32, Global Labor Organization (GLO).
    13. Do, Quy-Toan & Joshi, Shareen & Stolper, Samuel, 2018. "Can environmental policy reduce infant mortality? Evidence from the Ganga Pollution Cases," Journal of Development Economics, Elsevier, vol. 133(C), pages 306-325.
    14. Chen, Shuai & Oliva, Paulina & Zhang, Peng, 2022. "The effect of air pollution on migration: Evidence from China," Journal of Development Economics, Elsevier, vol. 156(C).
    15. Tom Chang & Joshua Graff Zivin & Tal Gross & Matthew Neidell, 2016. "Particulate Pollution and the Productivity of Pear Packers," American Economic Journal: Economic Policy, American Economic Association, vol. 8(3), pages 141-169, August.
    16. Avraham Ebenstein & Victor Lavy & Sefi Roth, 2016. "The Long-Run Economic Consequences of High-Stakes Examinations: Evidence from Transitory Variation in Pollution," American Economic Journal: Applied Economics, American Economic Association, vol. 8(4), pages 36-65, October.
    17. Kenneth Y. Chay & Michael Greenstone, 2003. "The Impact of Air Pollution on Infant Mortality: Evidence from Geographic Variation in Pollution Shocks Induced by a Recession," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 1121-1167.
    18. Janet Currie & Matthew Neidell, 2005. "Air Pollution and Infant Health: What Can We Learn from California's Recent Experience?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(3), pages 1003-1030.
    19. Aragón, Fernando M. & Miranda, Juan Jose & Oliva, Paulina, 2017. "Particulate matter and labor supply: The role of caregiving and non-linearities," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 295-309.
    20. Prashant Bharadwaj & Matthew Gibson & Joshua Graff Zivin & Christopher Neilson, 2017. "Gray Matters: Fetal Pollution Exposure and Human Capital Formation," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 505-542.
    21. Janet Currie & Reed Walker, 2011. "Traffic Congestion and Infant Health: Evidence from E-ZPass," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 65-90, January.
    22. Nicholas J. Sanders, 2012. "What Doesn’t Kill You Makes You Weaker: Prenatal Pollution Exposure and Educational Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 47(3), pages 826-850.
    23. Douglas Almond & Janet Currie, 2011. "Killing Me Softly: The Fetal Origins Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 153-172, Summer.
    24. Tanaka, Shinsuke, 2015. "Environmental regulations on air pollution in China and their impact on infant mortality," Journal of Health Economics, Elsevier, vol. 42(C), pages 90-103.
    25. Chen, Xi & Zhang, Xiaobo & Zhang, Xin, 2017. "Smog in our brains: Gender differences in the impact of exposure to air pollution on cognitive performance in China," IFPRI discussion papers 1619, International Food Policy Research Institute (IFPRI).
    26. Sebastian Miller & Mauricio Vela, 2013. "The Effects of Air Pollution on Educational Outcomes: Evidence from Chile," Research Department Publications IDB-WP-468, Inter-American Development Bank, Research Department.
    27. Marcos A. Rangel & Tom S. Vogl, 2019. "Agricultural Fires and Health at Birth," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 616-630, October.
    28. Joshua Graff Zivin & Matthew Neidell, 2012. "The Impact of Pollution on Worker Productivity," American Economic Review, American Economic Association, vol. 102(7), pages 3652-3673, December.
    29. Brainerd, Elizabeth & Menon, Nidhiya, 2014. "Seasonal effects of water quality: The hidden costs of the Green Revolution to infant and child health in India," Journal of Development Economics, Elsevier, vol. 107(C), pages 49-64.
    30. Spears, Dean, 2012. "Height and cognitive achievement among Indian children," Economics & Human Biology, Elsevier, vol. 10(2), pages 210-219.
    31. Sebastian Miller & Mauricio Vela, 2013. "The Effects of Air Pollution on Educational Outcomes: Evidence from Chile," Research Department Publications IDB-WP-468, Inter-American Development Bank, Research Department.
    32. Balakrishnan, Uttara & Tsaneva, Magda, 2021. "Air pollution and academic performance: Evidence from India," World Development, Elsevier, vol. 146(C).
    Full references (including those not matched with items on IDEAS)

    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. Andrea La Nauze & Edson R. Severnini, 2021. "Air Pollution and Adult Cognition: Evidence from Brain Training," NBER Working Papers 28785, National Bureau of Economic Research, Inc.
    2. Dolores de la Mata & Carlos Felipe Gaviria Garces, 2019. "Exposure to Pollution and Infant Health: Evidence from Colombia," CINCH Working Paper Series 1902, Universitaet Duisburg-Essen, Competent in Competition and Health.
    3. Colmer, Jonathan & Lin, Dajun & Liu, Siying & Shimshack, Jay, 2021. "Why are pollution damages lower in developed countries? Insights from high-Income, high-particulate matter Hong Kong," Journal of Health Economics, Elsevier, vol. 79(C).
    4. Sandra Aguilar-Gomez & Nathaly M. Rivera, 2024. "Air Pollution in the Global South: An Overview of Its Sources and Impacts," Working Papers wp561, University of Chile, Department of Economics.
    5. Chen, Yulong, 2024. "Early exposure to air pollution and cognitive development later in life: Evidence from China," China Economic Review, Elsevier, vol. 83(C).
    6. Singh, Tejendra Pratap & Visaria, Sujata, 2021. "Up in the Air: Air Pollution and Crime – Evidence from India," SocArXiv hs4xj, Center for Open Science.
    7. Ball, Alastair, 2014. "Air pollution, foetal mortality, and long-term health: Evidence from the Great London Smog," MPRA Paper 63229, University Library of Munich, Germany, revised 25 Mar 2015.
    8. Juliana Carneiro & Matthew A. Cole & Eric Strobl, 2024. "Foetal Exposure to Air Pollution and Students' Cognitive Performance: Evidence from Agricultural Fires in Brazil," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 86(1), pages 156-186, February.
    9. Clara Kögel, 2022. "The impact of air pollution on labour productivity in France," Documents de travail du Centre d'Economie de la Sorbonne 22020, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    10. Štěpán Mikula & Mariola Pytliková, 2020. "Air Pollution & Migration: Exploiting a Natural Experiment from the Czech Republic," EconPol Working Paper 43, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    11. Shihe Fu & V. Brian Viard, 2022. "A mayors perspective on tackling air pollution," Chapters, in: Charles K.Y. Leung (ed.), Handbook of Real Estate and Macroeconomics, chapter 16, pages 413-437, Edward Elgar Publishing.
    12. Zhenyu Yao & Wei Zhang & Xinde Ji & Weizhe Weng, 2023. "Short-Term Exposure to Air Pollution and Cognitive Performance: New Evidence from China’s College English Test," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(1), pages 211-237, May.
    13. Zhang, Xin & Wang, Yixuan & Hu, Xingyi & Chen, Xi, 2024. "Fetal Pollution Exposure, Cognitive Ability, and Gender-Specific Parental Investment," IZA Discussion Papers 17288, Institute of Labor Economics (IZA).
    14. Jennifer A. Heissel & Claudia Persico & David Simon, 2022. "Does Pollution Drive Achievement? The Effect of Traffic Pollution on Academic Performance," Journal of Human Resources, University of Wisconsin Press, vol. 57(3), pages 747-776.
    15. Bridget Hoffmann & Juan Pablo Rud, 2022. "Exposure or Income? The Unequal Effects of Pollution on Daily Labor Supply," Working Papers 109, Red Nacional de Investigadores en Economía (RedNIE).
    16. Brehm, Johannes & Pestel, Nico & Schaffner, Sandra & Schmitz, Laura, 2022. "From low emission zone to academic track: Environmental policy effects on educational achievement in elementary school," Ruhr Economic Papers 980, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    17. Elsner, Benjamin & Wozny, Florian, 2023. "Long-run exposure to low-dose radiation reduces cognitive performance," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    18. Nguyen, Hung T. & Pham, Mia Hang, 2021. "Air pollution and behavioral biases: Evidence from stock market anomalies," Journal of Behavioral and Experimental Finance, Elsevier, vol. 29(C).
    19. Ron Chan & Martino Pelli & Veronica Vienne, 2023. "Air Pollution, Smoky Days and Hours Worked," CIRANO Working Papers 2023s-15, CIRANO.
    20. Alastair Ball, 2018. "The Long-Term Economic Costs of the Great London Smog," Birkbeck Working Papers in Economics and Finance 1814, Birkbeck, Department of Economics, Mathematics & Statistics.

    More about this item

    Keywords

    Air pollution; Cognitive performance; Educational outcomes; Thermal inversions; India.;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:awe:wpaper:452. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/iegggin.html .

    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.