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). https://doi.org/10.1038/s41598-021-88041-w
Ambient particulate air pollution and daily stock market returns and volatility in 47 cities worldwide
|Author:||Kiihamäki, Simo-Pekka1; Korhonen, Marko2; Jaakkola, Jouni J. K.1,3,4|
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
|Online Access:||PDF Full Text (PDF, 1.9 MB)|
|Persistent link:|| http://urn.fi/urn:nbn:fi-fe2021061136581
|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.
|Type of Publication:||
A1 Journal article – refereed
|Field of Science:||
3142 Public health care science, environmental and occupational health
512 Business and management
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 (Academy of Finland Funding decision)
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