The Long-Term Effect of Air Pollution on Human Cognition: Evidence from China

64 Pages Posted: 22 Mar 2021 Last revised: 10 Apr 2023

See all articles by Lanlin Ding

Lanlin Ding

affiliation not provided to SSRN

Maoyong Fan

Ball State University - Department of Economics

Peng Nie

Xi'an Jiaotong University

Date Written: April 9, 2023

Abstract

This paper investigates the long-term causal effect of fine particulate matter (PM2.5) exposure on cognitive ability in middle-aged and older Chinese individuals. Using a regression discontinuity design, we find that a 10-μg/m3 increase in long-term PM2.5 exposure leads to a 0.7 standard deviation (SD) reduction in overall cognitive ability scores. The negative effects of PM2.5 on cognitive ability increase with lengthier exposure periods, indicating a cumulative impact over time. Females, older individuals, and those with lower education levels experience more significant impacts. We estimate that one-SD increase in PM2.5 is linked to an annual economic cost of $24.2 billion in terms of additional medical expenditures on mental illness caused by severe depression, and reducing PM2.5 levels to the World Health Organization standard could save approximately $34.7 billion annually.

Keywords: Long-term exposure, Fine particulate matter, Cognitive ability, Regression discontinuity design, Huai River Policy

JEL Classification: I15, I18, Q48, Q53

Suggested Citation

Ding, Lanlin and Fan, Maoyong and Nie, Peng, The Long-Term Effect of Air Pollution on Human Cognition: Evidence from China (April 9, 2023). Available at SSRN: https://ssrn.com/abstract=3792594 or http://dx.doi.org/10.2139/ssrn.3792594

Lanlin Ding

affiliation not provided to SSRN

Maoyong Fan (Contact Author)

Ball State University - Department of Economics ( email )

Whitinger Business Building, room 201
2000 W. University Ave.
Muncie, IN 47306-0340
United States
765-285-5741 (Phone)

HOME PAGE: http://https://sites.google.com/site/maoyongfan/home

Peng Nie

Xi'an Jiaotong University ( email )

No. 74 Yanta West Road
Xi'an, 710061
China

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