Work

Air pollution and defensive behavior: Evidence from transaction data in China

Year: 2024

Type: article

Abstract: This study presents empirical research about the defensive behavior of air pollution, that is, health insurance purchases. Using transaction-level data from a large insurance company, covering more than half a million insurance contracts from nineteen cities in China from 2014 to 2018, we empirically imply that an increase of 10% in AQI leads to a 0.37% uptick in the number of daily sales of health insurance contracts by the company within the city. The effect is non-linear and is more pronounced when the AQI exceeds 200. Besides, the defensive cost for a one-unit increase in AQI accounts for around 1.70% of individual income annually. We demonstrate that the positive impact of air pollution on health insurance purchases is primarily driven by health management awareness and social interaction.

Source: PLoS ONE

DOI: 10.1371/journal.pone.0307295

Authors: Qingqing Yang, Xinping Dong

Institutions: Southwestern University of Finance and Economics, NingboTech University

Language: English

Topic: Air Quality and Health Impacts

Subfield: Health, Toxicology and Mutagenesis

Field: Environmental Science

Domain: Physical Sciences

SDG: Good health and well-being

Open Access status: gold

Estimated APC paid: $2,290