Working Paper: NBER ID: w30715
Authors: Victor Lavy; Genia Rachkovski; Omry Yoresh
Abstract: Air pollution can adversely affect physiological and cognitive performance. This study estimates the causal effect of increased nitrogen dioxide (NO2), a primary air pollutant, on construction work accidents, a significant factor related to labor market productivity losses. Using data from all construction sites and pollution monitoring stations in Israel, we find a strong and significant effect on accidents, with a 377% (138%) increase on high (moderate) NO2 pollution days compared to clean air levels. Our mechanism analysis suggests the effect is exacerbated under cognitive strain or worker fatigue. A cost-benefit analysis, supported by a nonparametric estimation, examines subsidizing site closures on highly polluted days.
Keywords: air pollution; workplace accidents; nitrogen dioxide; construction sites
JEL Codes: J01; I10; I15; J24; Q51; Q52; Q53
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| NO2 levels (Q31) | cognitive impairment (D91) |
| cognitive impairment (D91) | construction site accidents (J28) |
| NO2 levels (Q31) | fatigue (J22) |
| fatigue (J22) | construction site accidents (J28) |
| NO2 levels (Q31) | construction site accidents (J28) |