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

67 Pages Posted: 22 Mar 2021

See all articles by Zhenxuan Wang

Zhenxuan Wang

Duke University

Junjie Zhang

Duke Kunshan University; Duke University

Date Written: March 3, 2021

Abstract

We study the effect of information provision on avoidance behavior, using China's staggered roll-out of air pollution information and a unique dataset of high-frequency mask purchase transactions. Employing a generalized difference-in-differences approach, we estimate 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 avoidance behavior to reduce air pollution exposure.

Keywords: Information Provision, Air Pollution, Avoidance Behavior

JEL Classification: Q51, Q53, Q56, I12

Suggested Citation

Wang, Zhenxuan and Zhang, Junjie, The Value of Information Disclosure: Evidence from Mask Consumption in China (March 3, 2021). Available at SSRN: https://ssrn.com/abstract=3796598 or http://dx.doi.org/10.2139/ssrn.3796598

Zhenxuan Wang

Duke University ( email )

Durham, NC
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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