Pollution risk and life insurance decisions: Microgeographic evidence from the United Kingdom.

Autor: Adetutu MO; Loughborough Business School, Loughborough University, Leics, UK.; School of Economics and Finance, University of the Witwatersrand, Johannesburg, South Africa., Odusanya KA; Loughborough Business School, Loughborough University, Leics, UK., Rasciute S; Loughborough Business School, Loughborough University, Leics, UK., Stathopoulou E; Department of Economics, University of Sheffield, Sheffield, UK.
Jazyk: angličtina
Zdroj: Risk analysis : an official publication of the Society for Risk Analysis [Risk Anal] 2024 Aug; Vol. 44 (8), pp. 1907-1930. Date of Electronic Publication: 2024 Feb 08.
DOI: 10.1111/risa.14279
Abstrakt: Recent research documents that exposure to air pollution can trigger various behavioral reactions. This article presents novel empirical evidence on the causal effect of pollution risk on life insurance decisions. We create a unique dataset by linking microgeographic air quality information to the confidential UK Wealth and Assets Survey. We identify an inverse N-shape relationship between pollution risk and life insurance adoption by exploiting the orthogonal variations in meteorological conditions. Over a given range above a threshold of exposure, rising pollution is associated with rising demand for life insurance, whereas at lower than the threshold levels of pollution, higher exposure risk reduces demand for insurance. Our findings indicate-for the first time-a nonlinear relationship between local pollution risk and life insurance demand.
(© 2024 The Authors. Risk Analysis published by Wiley Periodicals LLC on behalf of Society for Risk Analysis.)
Databáze: MEDLINE
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