Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/193215 
Authors: 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11921
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Cognitive functioning is critical as in our daily life a host of real-world complex decisions in high-stakes markets have to be made. The decision-making process can be vulnerable to environmental stressors. Summarizing the growing economic and epidemiologic evidence linking air pollution, cognition performance and real-world decision making, we first illustrate key physiological and psychological pathways between air pollution and cognition. We then document the main patterns of air pollution affecting cognitive test performance by type of cognitive tests, gender, window of exposure, age profile, and educational attainment. We further extend to a review of real-world decision making that has been found to be affected by air pollution and the resulting cognitive impairments. Finally, rich implications on environmental health policies are drawn based on existing evaluations of social costs of air pollution.
Subjects: 
decision making
air pollution
cognitive performance
intelligence
JEL: 
I24
Q53
Q51
G11
G41
J24
Document Type: 
Working Paper

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