Publications

Agarwal, S., Long, W., Yang, Y. (2021). Impact of transboundary air pollution on service quality and consumer satisfaction. Journal of Economic Behavior and Organization, 192, 357-380, https://doi.org/10.1016/j.jebo.2021.10.002
This study investigates how air pollution in Singapore, stemming from forest fires in Indonesia, impacts both firm productivity and consumer satisfaction. We measured firm productivity in the private sector by examining subcategory review scores related to service quality, while consumer satisfaction was assessed through overall individual-level online review scores. Our findings indicate that when air quality declines due to haze, there is a noticeable dip in consumer satisfaction. However, as the haze clears, consumer satisfaction undergoes a significant recovery, remaining higher than pre-haze levels for approximately eight months. A deeper dive into the review data using sentiment analysis revealed that the decline in consumer satisfaction during hazy periods is more linked to changes in people’s mood rather than any decline in service quality.

Agarwal, S., Yu, Q,. Shi, L., Wei, G., Zhu, H. (2021). Impact of temperature on morbidity: New evidence from China. Journal of Environmental Economics and Management, 109(102495), https://doi.org/10.1016/j.jeem.2021.102495

In this study, we investigate how temperature impacts hospitalization rates in China. Utilizing medical data from two major public insurance programs across 47 cities and 28 provinces over three years, we found that when the average temperature exceeds 27°C, there is a 7.3% increase in hospital admissions and a 2% increase in hospitalizations over the subsequent weeks compared to normal temperature days. This effect is more pronounced than what has been observed in developed countries. We also calculated the financial impact of these temperature-related hospitalizations. Each additional hot day in China results in about 2 billion yuan (roughly 0.3 billion US dollars) in increased medical expenses, with 1.9 billion yuan (about 0.29 billion US dollars) covered by the public insurance system and 0.2 billion yuan (approximately 0.01 billion US dollars) paid by insured individuals. In simple terms, our study shows that hot weather significantly increases hospitalizations and healthcare costs in China, with most of the cost burden placed on the public insurance system.

Agarwal, S., Sing, T. F., & Yang, Y. (2020). The impact of transboundary haze pollution on household utilities consumption. Energy Economics, 85(104591), https://doi.org/10.1016/j.eneco.2019.104591

This paper investigates how air pollution impacts household water and electricity consumption in Singapore, using transboundary haze pollution from Indonesian forest fires as an external factor. Our findings reveal that heightened levels of haze pollutants in the air result in significant increases in water and electricity usage. This happens because, during severe haze periods, households tend to stay indoors, curtail outdoor activities to minimize health risks, and intensify efforts to mitigate these risks when necessary. Our analysis of social media data, particularly Twitter tweets, indicates that higher water and electricity consumption is associated with more negative emotions and perceptions of air pollution. The effects on utility consumption are also linked to the duration of air pollution, with short-term effects returning to normal quickly. However, longer periods of air pollution lead to sustained higher utility consumption for up to two months, reflecting increased spending on water and electricity due to air pollution events.

Nofsinger, J. R., Sulaeman, J., & Varma, A. (2019). Institutional investors and corporate social responsibility. Journal of Corporate Finance, 58, 700-725. https://doi.org/10.1016/j.jcorpfin.2019.07.012

Despite the growing interest in sustainable investments, our understanding of how various aspects of CSR affect institutional investors’ portfolios remains limited. This study provides empirical evidence supporting the notion that economic incentives play a key role in shaping institutional investors’ preferences for a company’s Environmental (E) and Social (S) performance. Utilizing institutional investors’ stock holdings data, we observed a trend where institutions tend to reduce their holdings in firms with weaker ES performance, yet they appear largely indifferent to firms with strong ES performance. This suggests that firms with significant ES weaknesses face higher downside risks, including the potential for bankruptcy or delisting from stock exchanges due to poor performance. In the case of firms with strong ES performance, we conclude the investors’ ambivalence arises from a lack of clear economic benefits associated with such performance.

Agarwal, S., Deng, Y., & Li, T. (2019). Environmental regulation as a double-edged sword for housing markets: Evidence from the NOx budget trading program. Journal of Environmental Economics and Management, 96, 286-309. https://doi.org/10.1016/j.jeem.2019.06.006

In this paper, we investigate the impact of the NOx Budget Trading Program (NBP), a cap-and-trade system, on housing markets. Our analysis reveals that the effect of the NBP on housing prices in participating states varies, growing in low-manufacturing-intensity regions and decreasing in high-manufacturing-intensity regions. We propose two channels—health and labor-market channels—to explain this phenomenon. Specifically, for the labor-market channels, we suggest that the NBP discourages manufacturers from employing labor due to increased production costs, resulting in reduced housing demand and a decline in housing prices in high-manufacturing-intensity areas. Additionally, we found that in high-manufacturing-intensity areas, loan application volume declined, rejection rates increased, and the probability of loan default rose, contributing to the overall decrease in the housing market of those areas.

Lam, S. S., Zhang, W., & Chien, C. Y. K. (2018). Can corporate social responsibility fill institutional voids. In P.S Hoffmann (Ed.), Firm Value-Theory and Empirical Evidence (2nd ed.). IntechOpen. http://doi.org/10.5772/intechopen.72333

Our study responds to the need for a deeper comprehension of CSR (Corporate Social Responsibility)’s underlying mechanisms, especially at the institutional level. Using 134,823 observations of 2542 firms across 44 countries from 2009 to 2014, we observed that CSR has a more significant positive impact on firm value in markets where there are significant institutional gaps (e.g., absence of financial reportage or monitoring systems). In strong institutional frameworks, however, the results were mixed; for these results, we recommend firms pursue CSR initiatives that are likely to enhance value and align well with their existing core competencies.

Agarwal, S., Rengarajan, S., Sing, T. F., & Yang, Y. (2017). Nudges from school children and electricity conservation: Evidence from the “Project Carbon Zero” campaign in Singapore. Energy Economics, 61, 29-41. https://doi.org/10.1016/j.eneco.2016.10.014

In our study, we explore the effectiveness of children in influencing their parents’ energy consumption behavior. Utilizing the “Project Carbon Zero” campaign in Singapore as a quasi-experiment, we investigate the impact of schoolchildren’s nudges on conveying electricity conservation messages to homes. Our results, based on a 2km home–school distance identification, show that families within 2km of participating schools (treatment group) used 1.8% less electricity during the contest compared to those outside this zone (control group). Additionally, the electricity savings persisted, with an estimated marginal reduction of 1.6% in the post-campaign months. These findings suggest that, as an alternative to monetary interventions, we, as policymakers and energy conservation advocates, can effectively employ schoolchildren’s nudges in public campaigns to drive behavioral changes in electricity conservation among families.