The Impact of Air Pollution on Movie Theater Admissions
46 Pages Posted: 22 May 2020
Date Written: April 23, 2020
We provide new evidence of pollution avoidance in the movie theater market. Our analysis is based on a unique data set of high-frequency movie ticket sales in China at the movie- and city-level during 2012-2014. We estimate that one pollution day reduces the market share of a movie by 2.26%, other things being equal. On average, the popular movies are inelastic to air pollution. However, as air quality deteriorates, even the blockbuster movies start to suffer a box-office loss during the heavy pollution episodes. Our results suggest that air pollution suppresses demand for a consumer sector in a largely indoor environment.
Keywords: Air Pollution, Theatrical Market, Pollution Avoidance
JEL Classification: Q51, K32, Q56
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