(Translated by https://www.hiragana.jp/)
Coal Smoke, City Growth, and the Cost of the Industrial Revolution
IDEAS home Printed from https://ideas.repec.org/p/ste/nystbu/18-21.html
   My bibliography  Save this paper

Coal Smoke, City Growth, and the Cost of the Industrial Revolution

Author

Listed:
  • W. Walker Hanlon

Abstract

This article provides the first rigorous estimates of how industrial air pollution from coal burning affects long-run city growth. I introduce a new theoretically grounded strategy for estimating this relationship and apply it to data from highly polluted British cities from 1851 to 1911. I show that local industrial coal use substantially reduced long-run city employment and population growth. Moreover, a counterfactual analysis suggests that plausible improvements in coal-use efficiency would have led to a higher urbanisation rate in Britain by 1911. These findings contribute to our understanding of the effects of air pollution and the environmental costs of industrialisation.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • W. Walker Hanlon, 2018. "Coal Smoke, City Growth, and the Cost of the Industrial Revolution," Working Papers 18-21, New York University, Leonard N. Stern School of Business, Department of Economics.
  • Handle: RePEc:ste:nystbu:18-21
    as

    Download full text from publisher

    File URL: http://walkerhanlon.com/papers/hanlon_coal_and_the_costs_of_the_IR.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hanna, Rema & Oliva, Paulina, 2015. "The effect of pollution on labor supply: Evidence from a natural experiment in Mexico City," Journal of Public Economics, Elsevier, vol. 122(C), pages 68-79.
    2. Stephan Heblich & Alex Trew & Yanos Zylberberg, 2021. "East-Side Story: Historical Pollution and Persistent Neighborhood Sorting," Journal of Political Economy, University of Chicago Press, vol. 129(5), pages 1508-1552.
    3. Clay, Karen & Lewis, Joshua & Severnini, Edson, 2018. "Pollution, Infectious Disease, and Mortality: Evidence from the 1918 Spanish Influenza Pandemic," The Journal of Economic History, Cambridge University Press, vol. 78(4), pages 1179-1209, December.
    4. Moretti, Enrico, 2011. "Local Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 14, pages 1237-1313, Elsevier.
    5. Avraham Ebenstein & Victor Lavy & Sefi Roth, 2016. "The Long-Run Economic Consequences of High-Stakes Examinations: Evidence from Transitory Variation in Pollution," American Economic Journal: Applied Economics, American Economic Association, vol. 8(4), pages 36-65, October.
    6. Tom Y. Chang & Joshua Graff Zivin & Tal Gross & Matthew Neidell, 2019. "The Effect of Pollution on Worker Productivity: Evidence from Call Center Workers in China," American Economic Journal: Applied Economics, American Economic Association, vol. 11(1), pages 151-172, January.
    7. Williamson, Jeffrey G., 1981. "Some Myths Die Hard—Urban Disamenities One More Time: A Reply," The Journal of Economic History, Cambridge University Press, vol. 41(04), pages 905-907, December.
    8. Williamson, Jeffrey G., 1981. "Urban Disamenities, Dark Satanic Mills, and the British Standard of Living Debate," The Journal of Economic History, Cambridge University Press, vol. 41(1), pages 75-83, March.
    9. Crafts, Nicholas & Wolf, Nikolaus, 2014. "The Location of the UK Cotton Textiles Industry in 1838: A Quantitative Analysis," The Journal of Economic History, Cambridge University Press, vol. 74(4), pages 1103-1139, December.
    10. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle, November.
    11. Kenneth Y. Chay & Michael Greenstone, 2005. "Does Air Quality Matter? Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 376-424, April.
    12. Lichter, Andreas & Pestel, Nico & Sommer, Eric, 2017. "Productivity effects of air pollution: Evidence from professional soccer," Labour Economics, Elsevier, vol. 48(C), pages 54-66.
    13. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    14. Prashant Bharadwaj & Matthew Gibson & Joshua Graff Zivin & Christopher Neilson, 2017. "Gray Matters: Fetal Pollution Exposure and Human Capital Formation," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 505-542.
    15. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June.
    16. Joshua Graff Zivin & Matthew Neidell, 2013. "Environment, Health, and Human Capital," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 689-730, September.
    17. Edward L. Glaeser & Sari Pekkala Kerr & William R. Kerr, 2015. "Entrepreneurship and Urban Growth: An Empirical Assessment with Historical Mines," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 498-520, May.
    18. Kahn, Matthew E., 1999. "The Silver Lining of Rust Belt Manufacturing Decline," Journal of Urban Economics, Elsevier, vol. 46(3), pages 360-376, November.
    19. Enrico Moretti, 2014. "Local Economic Development, Agglomeration Economies, and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 275-331.
    20. Karen Clay & Werner Troesken, 2011. "Did Frederick Brodie Discover the World's First Environmental Kuznets Curve? Coal Smoke and the Rise and Fall of the London Fog," NBER Chapters, in: The Economics of Climate Change: Adaptations Past and Present, pages 281-309, National Bureau of Economic Research, Inc.
    21. Joshua Graff Zivin & Matthew Neidell, 2012. "The Impact of Pollution on Worker Productivity," American Economic Review, American Economic Association, vol. 102(7), pages 3652-3673, December.
    22. Adam Isen & Maya Rossin-Slater & W. Reed Walker, 2017. "Every Breath You Take—Every Dollar You’ll Make: The Long-Term Consequences of the Clean Air Act of 1970," Journal of Political Economy, University of Chicago Press, vol. 125(3), pages 848-902.
    23. Clark, Gregory & Jacks, David, 2007. "Coal and the Industrial Revolution, 1700–1869," European Review of Economic History, Cambridge University Press, vol. 11(1), pages 39-72, April.
    24. H. Spencer Banzhaf & Randall P. Walsh, 2008. "Do People Vote with Their Feet? An Empirical Test of Tiebout," American Economic Review, American Economic Association, vol. 98(3), pages 843-863, June.
    25. Alan Fernihough & Kevin Hjortshøj, 2021. "Coal and the European Industrial Revolution," The Economic Journal, Royal Economic Society, vol. 131(635), pages 1135-1149.
    26. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
    27. Barreca, Alan I. & Clay, Karen & Tarr, Joel, 2014. "Coal, Smoke, and Death: Bituminous Coal and American Home Heating," IZA Discussion Papers 7987, Institute of Labor Economics (IZA).
    28. Hanlon, W. Walker & Miscio, Antonio, 2017. "Agglomeration: A long-run panel data approach," Journal of Urban Economics, Elsevier, vol. 99(C), pages 1-14.
    29. Tom Chang & Joshua Graff Zivin & Tal Gross & Matthew Neidell, 2016. "Particulate Pollution and the Productivity of Pear Packers," American Economic Journal: Economic Policy, American Economic Association, vol. 8(3), pages 141-169, August.
    30. Paul Goldsmith-Pinkham & Isaac Sorkin & Henry Swift, 2020. "Bartik Instruments: What, When, Why, and How," American Economic Review, American Economic Association, vol. 110(8), pages 2586-2624, August.
    31. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    32. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
    33. Clay, Karen & Lewis, Joshua & Severnini, Edson R., 2016. "Canary in a Coal Mine: Infant Mortality, Property Values, and Tradeoffs Associated with Mid-20th Century Air Pollution," IZA Discussion Papers 9884, Institute of Labor Economics (IZA).
    34. W. Walker Hanlon, 2018. "London Fog: A Century of Pollution and Mortality, 1866-1965," NBER Working Papers 24488, National Bureau of Economic Research, Inc.
    35. Fouquet, Roger, 2012. "The demand for environmental quality in driving transitions to low-polluting energy sources," Energy Policy, Elsevier, vol. 50(C), pages 138-149.
    36. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1231-1294.
    37. Rebecca Diamond, 2016. "The Determinants and Welfare Implications of US Workers' Diverging Location Choices by Skill: 1980-2000," American Economic Review, American Economic Association, vol. 106(3), pages 479-524, March.
    38. Brian Beach & W. Walker Hanlon, 2018. "Coal Smoke and Mortality in an Early Industrial Economy," Economic Journal, Royal Economic Society, vol. 128(615), pages 2652-2675, November.
    39. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-1090, October.
    40. repec:hoo:wpaper:e-95-4 is not listed on IDEAS
    41. Bayer, Patrick & Keohane, Nathaniel & Timmins, Christopher, 2009. "Migration and hedonic valuation: The case of air quality," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 1-14, July.
    42. Brian K. Kovak, 2013. "Regional Effects of Trade Reform: What Is the Correct Measure of Liberalization?," American Economic Review, American Economic Association, vol. 103(5), pages 1960-1976, August.
    43. Williamson, Jeffrey G., 1982. "Was the industrial revolution worth it? Disamenities and death in 19th century British towns," Explorations in Economic History, Elsevier, vol. 19(3), pages 221-245, July.
    44. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
    45. Pollard, Sidney, 1981. "Sheffield and Sweet Auburn—Amenities and Living Standards in the British Industrial Revolution: A Comment," The Journal of Economic History, Cambridge University Press, vol. 41(04), pages 902-904, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vania Licio, 2023. "The Italian coal shortage: the price of import and distribution, 1861–1911," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 17(3), pages 501-532, September.
    2. Tiago Cavalcanti & Kamiar Mohaddes & Hongyu Nian & Haitao Yin, 2023. "Air pollution and firm-level human capital, knowledge and innovation," Working Papers EPRG2301, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    3. Loïc Lévi & Jean Jacques Nowak & Sylvain Petit & Hakim Hammadou, 2022. "Industrial legacy and hotel pricing: An application of spatial hedonic pricing analysis in Nord-Pas-de-Calais, France," Tourism Economics, , vol. 28(4), pages 870-898, June.
    4. Yao Zhao & Xuena Kong & Mahmood Ahmad & Zahoor Ahmed, 2023. "Digital Economy, Industrial Structure, and Environmental Quality: Assessing the Roles of Educational Investment, Green Innovation, and Economic Globalization," Sustainability, MDPI, vol. 15(3), pages 1-24, January.
    5. Bogart, Dan & You, Xuesheng & Alvarez-Palau, Eduard J. & Satchell, Max & Shaw-Taylor, Leigh, 2022. "Railways, divergence, and structural change in 19th century England and Wales," Journal of Urban Economics, Elsevier, vol. 128(C).
    6. Deiana, Claudio & Giua, Ludovica, 2023. "This site is closed! The effect of decommissioning mining waste facilities on mortality in the long run," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    7. Hanlon, W.Walker & Heblich, Stephan, 2022. "History and urban economics," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    8. Hua Cheng & Yinhong Yu & Shiyu Zhang, 2024. "Subsidies, green innovation, and the sustainable performance: evidence from heavy-polluting enterprises in China," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 14(1), pages 102-116, March.
    9. Fei Ren & Yuke Zhu & Dong Le, 2022. "The Spatial Effect of Air Pollution Governance on Labor Productivity: Evidence from 262 Chinese Cities," IJERPH, MDPI, vol. 19(20), pages 1-25, October.
    10. Alex Hollingsworth & Taylor Jaworski & Carl Kitchens & Ivan J. Rudik, 2022. "Economic Geography and the Efficiency of Environmental Regulation," NBER Working Papers 29845, National Bureau of Economic Research, Inc.
    11. Schneider, Eric B., 2020. "Collider bias in economic history research," Explorations in Economic History, Elsevier, vol. 78(C).
    12. Batkeyev, Birzhan & DeRemer, David R., 2023. "Mountains of evidence: The effects of abnormal air pollution on crime," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 288-319.
    13. Cento Veljanovski, 2021. "The Impact of Employers' Liability on 19th‐Century U.K. Coalmining Fatalities," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 18(3), pages 660-683, September.
    14. Chen, Shuai & Oliva, Paulina & Zhang, Peng, 2022. "The effect of air pollution on migration: Evidence from China," Journal of Development Economics, Elsevier, vol. 156(C).
    15. Jue Wang & Rui Wang, 2024. "The Impact of Urbanization on Environmental Quality in Ecologically Fragile Areas: Evidence from Hengduan Mountain, Southwest China," Land, MDPI, vol. 13(4), pages 1-18, April.
    16. Wang, Mingyue & Sun, Tianshi, 2023. "Leave for where? The impact of air quality on migration: Evidence at the city-pair level in China," Economics & Human Biology, Elsevier, vol. 51(C).
    17. Duc A. Nguyen & Steven Brakman & Harry Garretsen & Tristan Kohl, 2023. "What’s in a Name? Initial Geography and German Urban Development," CESifo Working Paper Series 10435, CESifo.
    18. Brian D. Varian, 2022. "Review of periodical literature for 2020: (v) 1850–1945," Economic History Review, Economic History Society, vol. 75(1), pages 263-275, February.
    19. Amanda Guimbeau & Nidhiya Menon & Aldo Musacchio, 2020. "The Brazilian Bombshell? The Long-Term Impact of the 1918 Influenza Pandemic the South American Way," NBER Working Papers 26929, National Bureau of Economic Research, Inc.
    20. Liangli Wei & Xia Li, 2022. "Analysis of Spatial Dynamic Correlation and Influencing Factors of Atmospheric Pollution in Urban Agglomeration in China," Sustainability, MDPI, vol. 14(18), pages 1-12, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. W. Walker Hanlon, 2016. "Coal Smoke and the Costs of the Industrial Revolution," NBER Working Papers 22921, National Bureau of Economic Research, Inc.
    2. Shihe Fu & V. Brian Viard, 2022. "A mayors perspective on tackling air pollution," Chapters, in: Charles K.Y. Leung (ed.), Handbook of Real Estate and Macroeconomics, chapter 16, pages 413-437, Edward Elgar Publishing.
    3. Hanlon, W.Walker & Heblich, Stephan, 2022. "History and urban economics," Regional Science and Urban Economics, Elsevier, vol. 94(C).
    4. W. Walker Hanlon, 2015. "Pollution and Mortality in the 19th Century," NBER Working Papers 21647, National Bureau of Economic Research, Inc.
    5. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    6. Kahn, Matthew E. & Walsh, Randall, 2015. "Cities and the Environment," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 405-465, Elsevier.
    7. Matthew E. Kahn & Nancy Lozano‐Gracia & Maria Edisa Soppelsa, 2021. "Pollution'S Role In Reducing Urban Quality Of Life In The Developing World," Journal of Economic Surveys, Wiley Blackwell, vol. 35(1), pages 330-347, February.
    8. Stephan Heblich & Alex Trew & Yanos Zylberberg, 2021. "East-Side Story: Historical Pollution and Persistent Neighborhood Sorting," Journal of Political Economy, University of Chicago Press, vol. 129(5), pages 1508-1552.
    9. Borgschulte, Mark & Molitor, David & Zou, Eric Yongchen, 2022. "Air Pollution and the Labor Market: Evidence from Wildfire Smoke," IZA Discussion Papers 15373, Institute of Labor Economics (IZA).
    10. Colmer, Jonathan & Lin, Dajun & Liu, Siying & Shimshack, Jay, 2021. "Why are pollution damages lower in developed countries? Insights from high-Income, high-particulate matter Hong Kong," Journal of Health Economics, Elsevier, vol. 79(C).
    11. Li, Jennifer (Jie) & Massa, Massimo & Zhang, Hong & Zhang, Jian, 2021. "Air pollution, behavioral bias, and the disposition effect in China," Journal of Financial Economics, Elsevier, vol. 142(2), pages 641-673.
    12. Hanlon, W. Walker & Miscio, Antonio, 2017. "Agglomeration: A long-run panel data approach," Journal of Urban Economics, Elsevier, vol. 99(C), pages 1-14.
    13. Felix Bracht & Dennis Verhoeven, 2021. "Air pollution and innovation," CEP Discussion Papers dp1817, Centre for Economic Performance, LSE.
    14. Benjamin A. Jones, 2020. "Labor Market Impacts of Deforestation Caused by Invasive Species Spread," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(1), pages 159-190, September.
    15. Alessandro Palma & Inna Petrunyk & Daniela Vuri, 2022. "Prenatal air pollution exposure and neonatal health," Health Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 729-759, May.
    16. Bellani, Luna & Ceolotto, Stefano & Elsner, Benjamin & Pestel, Nico, 2021. "Air Pollution Affects Decision-Making: Evidence from the Ballot Box," IZA Discussion Papers 14718, Institute of Labor Economics (IZA).
    17. Dolores de la Mata & Carlos Felipe Gaviria Garces, 2019. "Exposure to Pollution and Infant Health: Evidence from Colombia," CINCH Working Paper Series 1902, Universitaet Duisburg-Essen, Competent in Competition and Health.
    18. Nguyen, Hung T. & Pham, Mia Hang, 2021. "Air pollution and behavioral biases: Evidence from stock market anomalies," Journal of Behavioral and Experimental Finance, Elsevier, vol. 29(C).
    19. Graff Zivin, Joshua & Liu, Tong & Song, Yingquan & Tang, Qu & Zhang, Peng, 2020. "The unintended impacts of agricultural fires: Human capital in China," Journal of Development Economics, Elsevier, vol. 147(C).
    20. Barreca, Alan I. & Neidell, Matthew & Sanders, Nicholas J., 2021. "Long-run pollution exposure and mortality: Evidence from the Acid Rain Program," Journal of Public Economics, Elsevier, vol. 200(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ste:nystbu:18-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Amanda Murphy (email available below). General contact details of provider: https://edirc.repec.org/data/ednyuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.