The Impact of Air Pollution on Movie Theater Admissions

46 Pages Posted: 22 May 2020

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

Sam Houston State University - College of Business Administration - Department of Economics and International Business

Junjie Zhang

Duke Kunshan University; Duke University

Date Written: April 23, 2020

Abstract

We provide new evidence of pollution avoidance in the movie theater market. Our analysis is based on a unique data set 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. On average, the popular movies are inelastic to air pollution. However, as air quality deteriorates, even the blockbuster movies start to suffer a box-office loss during the heavy pollution episodes. Our results suggest that air pollution suppresses demand for a consumer sector in a largely indoor environment.

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 (April 23, 2020). 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

Sam Houston State University - College of Business Administration - Department of Economics and International Business ( email )

SHSU Box 2118
Huntsville, TX 77341-2118
United States

Junjie Zhang (Contact Author)

Duke Kunshan University ( email )

No. 8 Duke Avenue
Kunshan, 215316
China
+86 512 36657068 (Phone)

HOME PAGE: http://junjiezhang.org

Duke University ( email )

No. 8 Duke Avenue
Kunshan, 215316
China
+86 512 36657068 (Phone)

HOME PAGE: http://junjiezhang.org

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