Does air quality improvement promote enterprise productivity increase? Based on the spatial spillover effect of 242 cities in China

Abstract

Introduction: Air pollution not only harms people's health, but also impedes urban economic development. This study aims to analyze how air quality improvement affects enterprise productivity. And then from regional and time heterogeneities' aspects to investigate if the air quality improvement increase enterprise productivity.

Methods: The data were obtained from China Industrial Enterprise Database and China Patent Database,and this study used Spatial Durbin Model to analyze how air quality improvement affects enterprise productivity.

Results: The results show that: (1) air quality improvement and its spatial spillover effect can significantly increase enterprise productivity in adjacent areas. (2) After 2010, the government implemented more stringent measures to prevent and control air pollution, which made the air quality improvement promote enterprise productivity increase more obviously. The air quality improvement in eastern and central regions was less obvious than in western regions. (3) Air quality improvement can increase enterprise productivity by improving enterprise innovation quality, ensuring the health of urban residents, and increasing the stock of urban human capital.

Conclusion: Air quality improvement and its spatial spillover effect can significantly increase enterprise productivity in adjacent areas. So this study puts forward some policy enlightenment, such as establishing an air pollution detection system, using an intelligent network supervision platform, and implementing a coordinated defense and governance system.

Keywords: air quality improvement; enterprise innovation quality; enterprise productivity; human capital; resident health; spatial spillover effect.