University of Oulu

Kiihamäki, SP., Korhonen, M. & Jaakkola, J.J.K. Ambient particulate air pollution and daily stock market returns and volatility in 47 cities worldwide. Sci Rep 11, 8628 (2021).

Ambient particulate air pollution and daily stock market returns and volatility in 47 cities worldwide

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Author: Kiihamäki, Simo-Pekka1; Korhonen, Marko2; Jaakkola, Jouni J. K.1,3,4
Organizations: 1Center for Environmental and Respiratory Health Research, Faculty of Medicine, University of Oulu, Oulu, Finland
2Department of Economics, Oulu Business School, University of Oulu, Oulu, Finland
3Finnish Meteorological Institute, Helsinki, Finland
4Biocenter Oulu, University of Oulu, Oulu, Finland
Format: article
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 1.9 MB)
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Language: English
Published: Springer Nature, 2021
Publish Date: 2021-06-11


We studied globally representative data to quantify how daily fine particulate matter (PM2.5) concentrations influence both daily stock market returns and volatility. Time-series analysis was applied on 47 city-level environmental and economic datasets and meta-analysis of the city-specific estimates was used to generate a global summary effect estimate. We found that, on average, a 10 μg/m³ increase in PM2.5 reduces same day returns by 1.2% (regression coefficient: − 0.012, 95% confidence interval: − 0.021, − 0.003) Based on a meta-regression, these associations are stronger in areas where the average PM2.5 concentrations are lower, the mean returns are higher, and where the local stock market capitalization is low. Our results suggest that a 10 μg/m³ increase in PM2.5 exposure increases stock market volatility by 0.2% (regression coefficient 0.002, 95% CI 0.000, 0.004), but the city-specific estimates were heterogeneous. Meta-regression analysis did not explain much of the between-city heterogeneity. Our results provide global evidence that short-term exposure to air pollution both reduces daily stock market returns and increases volatility.

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Series: Scientific reports
ISSN: 2045-2322
ISSN-E: 2045-2322
ISSN-L: 2045-2322
Volume: 11
Issue: 1
Article number: 8628
DOI: 10.1038/s41598-021-88041-w
Type of Publication: A1 Journal article – refereed
Field of Science: 3142 Public health care science, environmental and occupational health
512 Business and management
Funding: This study was supported by the Academy of Finland [Grant numbers 310372] and EU H2020 [Grant no. 874990].
EU Grant Number: (874990) EMERGE - Evaluation, control and Mitigation of the EnviRonmental impacts of shippinG Emissions
Academy of Finland Grant Number: 310372
Detailed Information: 310372 (Academy of Finland Funding decision)
Copyright information: © The Author(s) 2021. This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit