IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v136y2024ics0140988324004468.html
   My bibliography  Save this article

Air pollution and individual risk preference: Evidence from China

Author

Listed:
  • Liu, Kui
  • Meng, Chuyan
  • Yang, Shasha
  • Zhang, Guanglu

Abstract

Individual risk preference is a crucial determinant of decision-making under conditions of uncertainty. Risk preference is associated with internal individual characteristics as well as external environmental factors, such as air pollution. Combining a nationally representative longitudinal survey with Air Quality Index(AQI) and thermal inversion data, we find that for each unit increase in the AQI reduces risk preference by 8.9% of one standard deviation. Furthermore, heterogeneous analysis shows that men, youth, unmarried, employed, low-income level, low-education level and people with lower attention to the environment are more likely to be affected by air pollution. Research on mechanisms shows that air polluton may affect the risk preferences of individuals by affecting emotions and cognition.

Suggested Citation

  • Liu, Kui & Meng, Chuyan & Yang, Shasha & Zhang, Guanglu, 2024. "Air pollution and individual risk preference: Evidence from China," Energy Economics, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:eneeco:v:136:y:2024:i:c:s0140988324004468
    DOI: 10.1016/j.eneco.2024.107738
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988324004468
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2024.107738?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:eee:eneeco:v:136:y:2024:i:c:s0140988324004468. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    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.