While a lot of discussion around climate change focuses on emissions, reducing air pollution has a much wider range of benefits. Health improvements are obvious, but a less obvious boost might be in the form of enhanced creativity.

Research from the University of Cambridge examined the creativity of industrial firms in China and finds that increases in air pollution are associated with decreases in innovation. Indeed, firms exposed to high levels of air pollution had a lower proportion of employees with either a Ph.D. or master’s degree.

Wrong side of the river

The research was possible because of the so-called Huai River heating policy that was introduced in the 1950s. This meant that coal-based heating was only provided to cities north of the river, with those south of the river relying more on electric power.

“Our study shows how air pollution has created a gap in innovation, knowledge and human capital between the north and south of China, and this highlights how environmental quality is a crucial element in productivity, welfare and progress in our knowledge-based economy,” the researchers explain.

The difference in air quality between China’s north and south became substantial after several decades, and “since this pollution gap has been accumulated for more than 50 years it enables us to explore how the pollution stock affects firm-level human capital over a long period,” the study says.

Negative impact

The burning of coal releases a variety of pollutants, including particulate matter, nitrogen dioxides, and sulfur dioxides, into the air. These emissions are particularly high when the coal is not burned efficiently, as is often the case in low-load conditions in China.

The study in question examined companies located near the Huai River, in both the north and south, as these areas have similar social, economic, and geographic conditions, with the main difference being the level of air pollution.

To evaluate the innovation quality of these firms, the study categorized patents into three types: invention, utility model, and design. Invention patents, which involve technological advancements and process improvements, are considered to be high-quality innovations and are thoroughly examined for originality and novelty. Utility model and design patents, on the other hand, do not undergo such examination and are considered to be lower-level innovations.