Exposure to air pollution can influence investors' decision making

Researchers from the University of Oulu, Finland, studied the associations between local daily PM2.5 concentrations and stock market returns and volatility. The study included 47 stock market cities from around the world making it by far the most comprehensive study on the topic to date. The main results state that an increase of 10μg/m3 in the daily PM2.5 concentrations decreased the daily stock returns by 1.2% on average and increased the volatility slightly. "In this multidisciplinary study, we applied methods from both econometrics and environmental epidemiology to achieve city-specific and global estimates of the effects of fine particulate air pollution," explains professor Jouni J.K. Jaakkola, the study lead from the Center for Environmental and Respiratory Health research (CERH) at the University of Oulu.

May 5, 2021 - Phys
Researchers from the University of Oulu, Finland, studied the associations between local daily PM2.5 concentrations and stock market returns and volatility. The study included 47 stock market cities from around the world making it by far the most comprehensive study on the topic to date. The main results state that an increase of 10μg/m3 in the daily PM2.5 concentrations decreased the daily stock returns by 1.2% on average and increased the volatility slightly. "In this multidisciplinary study,..