ANALYZING THE IMPACT OF AIR POLLUTION ON LABOR PRODUCTIVITY IN MANUFACTURING

Klynovskyi D.

Sumy State University,
Sumy, Ukraine


Pages: 212-219


Original language: Ukrainian

DOI: 10.21272/1817-9215.2020.3-23

Summary:

As long as the ecological topic became highly discussed recently, economic research related to ecology seems relevant. Natural features have a substantial impact on economic outcomes, in particular health capital. Air pollution, which is believed to be one of the most notable factors of environmental deterioration, affects human health, thus may influence labor productivity. In developed countries ecologically friendly production tends to spread rapidly, and, as a result, a certain regeneration of ecology is observed. However, the developing countries still make the most efforts to realize their full industrial potential, assigning a lower priority to the ecological issues. A quantitative estimate of the effect of industrial pollutant emissions on the labor productivity of the manufacturing workers would be an important argument for the firm deciding to improve its production processes, e.g. invest in ‘clean’ technologies or enhance the working conditions. In addition, it is important to investigate managerial practices that were effective in keeping or growing the level of labor productivity while decreasing the harmful effect on the environment at the same time. The result of this research might be interesting both for manufacturing firms’ management and for policymakers designing the regulation for industrial firms to overwhelm the pollution levels. A policy tool for pollution regulation must be not only efficient in reducing the amounts of pollutant emissions, but also has to be a good incentive for producers to invest in clean technologies.

Keywords:
labor productivity, air pollution, labor health, technological efficiency, responsible investment, manufacturing firms.

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