The Impact of Air Pollution on Movie Theater Admissions

46 Pages Posted: 22 May 2020 Last revised: 11 Feb 2022

See all articles by Xiaobo He

Xiaobo He

School of Business, Shanghai University of International Business and Economics; University of Adelaide - Global Food Studies

Zijun Luo

University of Nebraska at Omaha - Department of Economics

Junjie Zhang

Duke Kunshan University; Duke University

Date Written: January 31, 2022

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.

Keywords: Air Pollution, Theatrical Market, Pollution Avoidance

JEL Classification: Q51, K32, Q56

Suggested Citation

He, Xiaobo and Luo, Zijun and Zhang, Junjie, The Impact of Air Pollution on Movie Theater Admissions (January 31, 2022). Available at SSRN: https://ssrn.com/abstract=3585194 or http://dx.doi.org/10.2139/ssrn.3585194

Xiaobo He

School of Business, Shanghai University of International Business and Economics ( email )

No. 1900, Wenxiang Road
Shanghai, 201620
China

University of Adelaide - Global Food Studies ( email )

10 Pulteney Street
Adelaide, South Australia 5005
Australia

Zijun Luo

University of Nebraska at Omaha - Department of Economics ( email )

College of Business Administration
60th and Dodge Streets
Omaha, NE 68182
United States

Junjie Zhang (Contact Author)

Duke Kunshan University ( email )

8 Duke Ave
Kunshan, 215316
China
+86 512 36657068 (Phone)

HOME PAGE: http://junjiezhang.org

Duke University ( email )

8 Duke Ave
Kunshan, 215316
China
+86 512 36657068 (Phone)

HOME PAGE: http://junjiezhang.org

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