IDEAS home Printed from https://ideas.repec.org/p/gme/wpaper/202403004.html
   My bibliography  Save this paper

Quantifying The Health Factor as a Mediator of the Pollution-Productivity Relationships in Indonesia

Author

Listed:
  • Ghozi Naufal Ali

    (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada)

  • Ester Dwi Sabtu

    (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada)

  • Muhammad Putra

    (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada)

  • Qisha Quarina

    (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada)

Abstract

Pollution (in this term, air pollution) is an environmental phenomenon that negatively impacts the lives of the broader community and harms all aspects of the human dimension, such as health and the economy. This study aims to quantify the impact of pollution on worker productivity in developing countries using longitudinal data from Indonesia in two periods (2007 and 2014) and utilizing satellite data to represent air pollution data better. This study uses an instrumental variable (IV) approach and expands it by quantifying health aspects as one of the transmissions in the relationship between pollution and productivity. The result is that pollution negatively impacts worker productivity, with a dominant negative effect transmitted by health factors and determines their productivity. For this reason, the government is involved in tackling increasing pollution to minimize the increase in disease cases while minimizing economic losses from this phenomenon in the future.

Suggested Citation

  • Ghozi Naufal Ali & Ester Dwi Sabtu & Muhammad Putra & Qisha Quarina, 2024. "Quantifying The Health Factor as a Mediator of the Pollution-Productivity Relationships in Indonesia," Gadjah Mada Economics Working Paper Series 202403004, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada.
    • Handle: RePEc:gme:wpaper:202403004
    as

    Download full text from publisher

    File URL: https://econworkingpaper.feb.ugm.ac.id/download/working_paper/202403004.pdf
    File Function: First version, 2024
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christian Dippel & Andreas Ferrara & Stephan Heblich, 2020. "Causal mediation analysis in instrumental-variables regressions," Stata Journal, StataCorp LP, vol. 20(3), pages 613-626, September.
    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. Liu, Benjamin & Johl, Shireenjit & Lasantha, Ruwan, 2023. "ESG scores and cash holdings: The role of disciplinary trading," Finance Research Letters, Elsevier, vol. 55(PA).
    2. Boerner, Lars & Rubin, Jared & Severgnini, Battista, 2021. "A time to print, a time to reform," European Economic Review, Elsevier, vol. 138(C).
    3. Shishir Shakya & Nabamita Dutta, 2024. "How Individualism Influences Female Financial Inclusion through Education: Evidence from Historical Prevalence of Infectious Diseases," Working Papers 24-03, Department of Economics, Appalachian State University.
    4. Bu, Ya & Du, Xin & Wang, Yuting & Liu, Shuyu & Tang, Min & Li, Hui, 2024. "Digital inclusive finance: A lever for SME financing?," International Review of Financial Analysis, Elsevier, vol. 93(C).
    5. Cheng, Qian & Wang, Hongru & Li, Yushen, 2022. "The effect of urban cultural diversity on the entrepreneurship of rural-to-urban migrant workers," China Economic Review, Elsevier, vol. 74(C).
    6. Erling Barth & Henning Finseraas & Anders Kjelsrud & Karl O. Moene, 2021. "Does the Rise of China Lead to the Fall of European Welfare States?," Working Papers 202007, Oslo Metropolitan University, Oslo Business School.
    7. Djemaï, Elodie & Clark, Andrew E. & D’Ambrosio, Conchita, 2024. "Take the Highway? Paved roads and well-being in Africa," World Development, Elsevier, vol. 183(C).
    8. Berbée, Paul & Braun, Sebastian T. & Franke, Richard, 2022. "Reversing Fortunes of German Regions, 1926-2019: Boon and Bane of Early Industrialization?," VfS Annual Conference 2022 (Basel): Big Data in Economics 264032, Verein für Socialpolitik / German Economic Association.
    9. Kristin Brandl & Elizabeth Moore & Camille Meyer & Jonathan Doh, 2022. "The impact of multinational enterprises on community informal institutions and rural poverty," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1133-1152, August.
    10. Alberto Ortega & Tyler Ludwig, 2023. "Immigrant English Proficiency, Children’s Educational Performance, and Parental Involvement," Review of Economics of the Household, Springer, vol. 21(2), pages 693-719, June.
    11. Rezki, Jahen F., 2023. "Does the mobile phone affect social development? Evidence from Indonesian villages," Telecommunications Policy, Elsevier, vol. 47(3).
    12. Hasibuan, Irpan Pebri Setiadi & Hartono, Djoni, 2024. "Remittances and multidimensional energy poverty of households in Indonesia," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 29-41.
    13. Xinjie Shi, 2022. "Moving out but not for the better: Health consequences of interprovincial rural‐urban migration in China," Health Economics, John Wiley & Sons, Ltd., vol. 31(4), pages 555-573, April.
    14. Gorgens, Tue & Meng, Xin & Zhao, Guochang, 2024. "Impact of Temporary Migration on Long-Run Economic Development: The Legacy of the Sent-down Youth Program," IZA Discussion Papers 16951, Institute of Labor Economics (IZA).
    15. Zhang, Yu & Xu, Zhicheng Phil & Kibriya, Shahriar, 2021. "The long-term effects of the slave trade on political violence in Sub-Saharan Africa," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 776-800.
    16. Han Zhang & Dongli Wu, 2023. "The Impact of Rural Industrial Integration on Agricultural Green Productivity Based on the Contract Choice Perspective of Farmers," Agriculture, MDPI, vol. 13(9), pages 1-20, September.
    17. Lopez-Uribe, Maria del Pilar & Sanchez Torres, Fabio, 2024. "Ideology and Rifles: The Agrarian Origins of Civil Conflict in Colombia," World Development, Elsevier, vol. 173(C).
    18. Kersting, Felix & Wohnsiedler, Iris & Wolf, Nikolaus, 2020. "Weber Revisited: The Protestant Ethic and the Spirit of Nationalism," The Journal of Economic History, Cambridge University Press, vol. 80(3), pages 710-745, September.
    19. Bose, Gautam & Jain, Tarun & Walker, Sarah, 2022. "Women’s labor force participation and household technology adoption," European Economic Review, Elsevier, vol. 147(C).
    20. Wei, Yueling & Zhang, Hongsheng & Zhao, Zihan, 2024. "Digitalization and pollution: Evidence from South Africa," China Economic Review, Elsevier, vol. 88(C).

    More about this item

    Keywords

    Pollution; Labor Productivity; Instrumental Variable (IV); Mediation Analysis; Developing Country;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

    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:gme:wpaper:202403004. 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: Dwi Rahmadi Nur Fathoni (email available below). General contact details of provider: https://edirc.repec.org/data/deugmid.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.