Earlier this week the World Meteorological Organization (WMO) announced that concentrations of CO2 in the Earth’s atmosphere surged to a record high in 2016. The increase was 50% higher than the average of the past 10 years. In its annual review, the UN says the gap between carbon cutting plans and the reductions required to keep temperature rises below 2 degrees Celsius is "alarmingly high".

“Environmental regulations are typically considered to be a drag on the economy,” writes Matthew Neidell in his article Air pollution and worker productivity. However, improved environmental quality may actually enhance productivity by creating a healthier workforce, he explains. For example, the pollutant PM2.5 has been shown to affect blood pressure, and cause irritation in the ear, nose, throat, and lungs, and mild headaches. It has also been linked with cognitive effects such as reductions in test scores.

Sefi Roth has also written about the link between air pollution and educational achievements and the effects of PM2.5 on scholastic performance of students in standardized exams in Israel. The study found that taking an exam on a polluted day was associated with a 3.2% decline in a student’s test scores. Boys and students from low socio-economic backgrounds were most affected.

Further articles on environmental regulation and the labor market:

• Air pollution and worker productivity by Matthew Neidell
• Air pollution, educational achievements, and human capital formation by Sefi Roth
• Employment effects of green energy policies by Nico Pestel