Measuring environmental regulation’s effect on firm competitiveness is central to designing optimal policies. Existing studies document significant negative effects of air pollution regulations on manufacturing competitiveness as measured by total factor productivity (TFP). A separate...

We provide novel evidence on how air pollution affects high-stakes joint decisions. Using administrative data of divorce records in a provincial capital in China from 2016 to 2019 and exploiting thermal inversions as an instrumental variable for air pollution, we find that a one standard...