Abstract:

Using satellite data to calculate PM_2.5 concentrations at the county level and firm-level R&D staff data, this paper finds that air pollution has a significant negative impact on firms’ human capital. Heterogeneity analysis shows that air pollution has differential effects on different types of R&D staff, and this negative impact is more pronounced in private firms. Mechanistic tests showed that air pollution had a significant negative impact on the mental health of highly educated worker. Further study found that to mitigate the negative impact of air pollution on human capital, firms choose to increase the intensity of capital substitution for labor. In addition, air pollution also has a significant negative impact on corporate performance. This study not only reveals the microscopic mechanism of environmental governance affecting the high-quality development of enterprises, but also provides some reference for further improving ecological environmental protection and achieving innovation-driven development.

Key words:

concentration of PM_2.5, research and development staff, environmental governance.