Our research design has two parts: the first part will estimate the effect of pollution on productivity (N = 40 firms); the second part will examine the willingness-to-pay for air pollution masks (N = 600 firms).
Part 1: In the first part, we will randomly sample 40 firms and install air quality monitors in each firm. We will install air purifiers in 20 randomly selected firms for a period of 6 months (treatment group). In our analysis, we will compare productivity indicators between the treatment and control group to estimate the impact of air filters on productivity.
Part 2: In the second part, we will randomly sample 600 firms.
Baseline Survey Visit: Surveyors will visit 600 firms and speak to both the factory owner and factory workers about pollution: Surveyors will conduct a baseline survey, which will include a module on pollution and beliefs about outdoor and indoor pollution levels, effect of pollution on productivity, and the protective effects of face masks. During the visit, objective indoor and outdoor pollution levels for factories in both the treatment and control group will be collected via air monitors. After the survey, during the same visit, surveyors will conduct the information intervention for the treatment group.
Information Intervention and Pollution Report Cards (Treatment Group Only): Surveyors will walk factory owners and factory workers through pollution report cards describing (objective) outdoor and indoor pollution levels, effect of pollution on productivity (from Part 1), and the protective effects of air pollution masks (engineering estimates).
Willingness-to-Pay Experiment: At the end, both factory owners and factory workers will be asked to take part in a real-stakes willingness-to-pay experiment; we will elicit willingness to pay for face masks using an incentive-compatible Becker-deGroot-Marschak (BDM) mechanism, which both induces exogenous variation in take-up and yields high resolution data on individual face-mask demand.
In our analysis, we will simply compare willingness-to-pay estimates across as well as between workers and owners in the treatment and control groups.