Air pollution can lead to traffic accidents either by reducing the road visibility or impacting the driver’s health and cognitive abilities. The objective of this paper is to explore this relationship between air pollution which is measured by PM2.5 and traffic accident which is measured by...

Using a proprietary data set of auto insurance claims from May 2014 to December 2016, this paper examines the influence of air pollution on the number and severity of traffic accidents in China. Combining an instrumental variable strategy with high-dimensional fixed effects, we find that air...