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Presented By: Energy & Environmental Economics

Energy & Environmental Economics

Air Pollution as a Cause of Violent Crime: Evidence from Los Angeles and Chicago presented by Evan Herrnstadt, Harvard University

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Abstract:
Exposure to air pollution has adverse impacts on human health, workplace productivity, educational and a variety of behavioral outcomes. Motivated by research from medicine and psychology linking pollution to aggression, we provide the first evidence of a causal link between short-run variation in ambient pollution and the commission of violent crime. Using the location of crimes and wind direction as a source of pollution variation, we find that air pollution increases violent crime in both Chicago (by 2.2%) and the Los Angeles metro area (by 6.1%). Consistent with the literature on aggression and ambient pollution, we find no effect on property crime. The results are robust to a wide variety of specifications and falsification tests. Back of the envelope calculations indicate that the cost of pollution-induced crime is comparable in magnitude to other outcomes studied in the literature and should be included in benefit-cost analysis of pollution abatement policies. Overall, the results suggest that pollution may reduce welfare and affect behavior and decision making through an even wider set of channels than previously understood.
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