The impact of air pollution on consumer behavior in the Great Britain

Abstract

On the 5th of March 2013, the Department of Environment, Food and Rural Affairs (Defra) issued warnings regarding elevated pollution levels. Air pollution were reported in various regions of England, thereby influencing consumer behavior significantly. In response to the inconveniences and health threats posed by air pollution, individuals may alter their behavior to contribute to environmental improvement and mitigate the risks of potential future disasters. This study employs a difference-in-difference model, incorporating a two-way fixed effect model, to explore the repercussions of air pollution on consumer behavior. The findings suggest severe air pollution increase reliance on public transportation, as well as heighten inclination towards walking and cycling for short journeys.