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All I need is the air that I breathe…

Anna Gueorguieva's picture

Also available in: 中文, Français

Photo by Jens Schott Knudsen via Flickr CC

Recent research shows that air quality affects the productivity of high-skilled workers. What does this mean for developing cities?

City governments invest a lot in job creation—they plan infrastructure, skills initiatives, and industry support with the goal to improve productivity and generate jobs and growth, especially in the high-skill sectors. Yet, there might be an important input to productivity that cities can pay more attention to: clean air.

Recent research suggests that a 10-unit increase in the air quality index decreases productivity by 0.35%. Seems marginal? This “productivity slow-down” costs the high-skill economy of China $2.2 billion per year for each additional 10 units of the air quality index.

The research in question studied the effect of air pollution on worker productivity in call centers in Shanghai and Nantong in China. The firm analyzed is Ctrip, one of the largest travel agencies in the country, employing more than 30,000 people. 50% of the workers’ pay is based on performance and the measures of productivity are very detailed and high frequency. The study concluded that there is a robust relationship between daily air pollution levels and worker productivity. On average, a 10-unit increase in the Air Quality Index (AQI) led to a 0.35% decline in the number of calls handled by a worker in a day at an AQI of 100. If we translate this to the entire Chinese high-skill industries, a 10-unit reduction of air pollution levels would increase the monetized value of improved productivity by $2.2 billion per year.

Economic growth in Europe: Leaving no region behind

Ede Ijjasz-Vasquez's picture
Economic growth in most countries is driven by a few urban centers that have a high concentration of economic activity. In the EU, 28 capital cities and 228 secondary cities amass 23% of the total population, generate 63% of total GDP, and were responsible for 64% of GDP growth between 2000 and 2013 (EuroStat). These cities are national and regional growth engines. This is of particular importance for lagging region policies, as it indicates that without strong cities, one cannot have strong regions.
 
This importance of cities for regional and national development now serves as a foundation for the dialogue between the World Bank and the European Commission, with respect to the design of the European Regional Development Fund (ERDF) for the 2014-2020 Programming Period. The ERDF is the world’s largest investment program targeting sub-national public infrastructure investments.
 
In this video, World Bank Senior Director Ede Ijjasz-Vasquez and Marcel Ionescu-Heroiu, Senior Urban Development Specialist from Romania Country Office team, discuss the importance of cities in regional and national growth and development, and the role the Bank is playing in the design of the world’s largest sub-national investment fund.