The Value of Information Disclosure: Evidence from Mask Consumption in China

80 Pages Posted: 22 Mar 2021 Last revised: 30 Jul 2023

See all articles by Zhenxuan Wang

Zhenxuan Wang

Duke University

Junjie Zhang

Duke Kunshan University; Duke University

Date Written: April 26, 2023

Abstract

We study the effect of information provision on defensive expenditures, using China's roll-out of air pollution information as a quasi-natural experiment. With a unique dataset of high-frequency mask purchase transactions, our difference-in-differences estimates show that the provision of air pollution information increases expenditures on PM2.5 respirators by 32%, which is mainly driven by improved information quality and the addition of PM2.5 index. The effect is enhanced by increased attention to pollution alerts and it is more pronounced during heavily polluted days. Our results shed light on the benefits of information provision through inducing defensive expenditures to reduce air pollution exposure.

Keywords: Information Provision, Air Pollution, Defensive Expenditures

JEL Classification: Q51, Q53, Q56, I12

Suggested Citation

Wang, Zhenxuan and Zhang, Junjie, The Value of Information Disclosure: Evidence from Mask Consumption in China (April 26, 2023). Available at SSRN: https://ssrn.com/abstract=3796598 or http://dx.doi.org/10.2139/ssrn.3796598

Zhenxuan Wang

Duke University ( email )

9 Curcuit Drive
Durham, NC 27705
United States

HOME PAGE: http://zhenxuanwang.org

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

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
334
Abstract Views
1,427
Rank
169,159
PlumX Metrics