Digitalni repozitorijum
Univerziteta u Beogradu
{{ mc.sd.lang | uppercase }}
The impact of air pollution on demand for life and health insurance
Mitrović, Đorđe
Trifunović, Dejan
Air pollution has become a severe cause of some serious illnesses. The costs of medical care substantially increase for individuals exposed to high levels of air pollution. Air pollution also affects decision-making, as documented in some experimental research. With enormous air pollution, people have become more risk-averse and have increased their demand for life and health insurance. Theoretical and empirical arguments show that demand for life insurance is nonlinear, meaning demand increases when air pollution reaches a certain threshold considered dangerous for health. Below this level of pollution, demand for life insurance might fall when air pollution increases. Demand for health insurance also exhibits a non-monotonic pattern similar to life insurance. In addition, there is a heterogeneous impact of air pollution on different individuals based on their income level, education, gender, marital status, the number of children, and the geographic location of their household. Risk perception plays an important role in insurance purchase decisions, and the impact of advertising and the behavior of friends and relatives is an important factor for air pollution risk perception. Empirical studies based on the micro-data show that the impact of air pollution is stronger on the demand for health than on the demand for life insurance.
engleski
2025
Ovo delo je licencirano pod uslovima licence
Creative Commons CC BY-NC-ND 4.0 - Creative Commons Autorstvo - Nekomercijalno - Bez prerada 4.0 International License.
http://creativecommons.org/licenses/by-nc-nd/4.0/legalcode
Keywords: air polution, life insurance, health insurance
170317065