IMPACT OF AIR POLLUTION ON BUYERS DECISION: NEW EMPIRICAL EVIDENCE FROM RMG SECTOR IN BANGLADESH

This paper aims to explore the impact of air pollution on corporate buyers' decisions. The empirical analysis was conducted on Readymade Garment (RMG) sector of Bangladesh. We employed the Spatial Interpolation techniques to predict the ambient air quality in Bangladesh. Further statistical analysis will be conducted to reveal the significant impact of air pollution on corporate investment and buyers perception. The underlying logic of the adverse effect is that the high air pollution enhances compliance costs, creates financial constraints to finance investment activities, and augments occupational health and safety risk, etc. The empirical analysis yields an important policy i.e., ensuring green production activities by sustainability professionals at RMG industries will not only reduce environmental pollution but will also impede environmental stress. Similarly, policy officials should devise efficient environmental policies that can help in keeping air pollution at the lowest level. This study complements the existing literature by exploring the novel relationship between air pollution and corporate investment.