Pollution and Entrepreneurship: Evidence from Cicada Emergence

38 Pages Posted: 18 Mar 2023

See all articles by Claudio Rizzi

Claudio Rizzi

University of Navarra - Finance

Date Written: March 13, 2023

Abstract

This paper examines the impact of pollution on entrepreneurial activity. I use the recurring cicada emergence cycles in the U.S. as exogenous shocks to show that pollution caused by pesticide use decreases entrepreneurial activity and quality by 3%. I find that pesticide use is linked to the households' decision to start a business through the impact of pollutants on health. Households exposed to an exogenous increase in pesticides experience an increase in health problems, medical expenses, and a decrease in health status. I also find evidence for the "job-lock" effect of employer-based insurance coverage on entrepreneurial activity.

Keywords: entrepreneurship, household finance, pesticides, pollution

JEL Classification: I10, L26, Q10, Q53

Suggested Citation

Rizzi, Claudio, Pollution and Entrepreneurship: Evidence from Cicada Emergence (March 13, 2023). University of Miami Business School Research Paper No. 4387748, Available at SSRN: https://ssrn.com/abstract=4387748 or http://dx.doi.org/10.2139/ssrn.4387748

Claudio Rizzi (Contact Author)

University of Navarra - Finance ( email )

08034 Barcelona
Spain

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