Assessing the Demand for Annuities in an Undeveloped Market: Evidence from Hong Kong

How to design an attractive annuity for an undeveloped market and how to assess thepotential demand for such a product? We first conduct a discrete choice experimentamong participants of a large-scale occupational defined contribution pension scheme inHong Kong to identify desired product characteristics of an annuity. The preferred annuityis sold by an A-rated insurance company, provides nominal annuity payouts and a 10-yearperiod-certain guarantee. Using a second survey, we then analyze the demand for thepreferred annuity. Close to one third of respondents chooses to annuitize, a fraction thatconsiderably exceeds observed annuitization rates in developed markets. Regardinghousehold characteristics, we find that annuity demand decreases with general financialliteracy but increases with specific knowledge about the annuity product. Remarkably, aself-reported bequest motive increases the demand for an annuity providing a 10-yearperiod-certain guarante

Fossil fuel divestment and climate change: Reviewing contested arguments

The strategy of fossil fuel divestment has attracted considerable attention in recent years, particularly in the press and social media. Spearheaded as a movement based on ethical principles, divestment has been suggested to play a potential role in shaping public opinion and policymaking on climate change. The growing size of the movement has prompted debate about the extent of its impact on fossil fuel companies and climate change mitigation efforts. This article investigates the potential effectiveness of the divestment movement according to the end goal of climate campaigners – to bring about a complete break from fossil fuels. We collect and qualify the key arguments as found mainly in the informal debate, and to a lesser extent in the academic literature. This will help readers to make an informed judgement that can contribute to a constructive debate about the effectiveness of divestment. We organize the literature into arguments for and against divestment, and explain how these relate to each other. In addition, we derive suggestions for further research on divestment

Fossil fuel divestment and climate change: Reviewing contested arguments

The strategy of fossil fuel divestment has attracted considerable attention in recent years, particularly in the press and social media. Spearheaded as a movement based on ethical principles, divestment has been suggested to play a potential role in shaping public opinion and policymaking on climate change. The growing size of the movement has prompted debate about the extent of its impact on fossil fuel companies and climate change mitigation efforts. This article investigates the potential effectiveness of the divestment movement according to the end goal of climate campaigners – to bring about a complete break from fossil fuels. We collect and qualify the key arguments as found mainly in the informal debate, and to a lesser extent in the academic literature. This will help readers to make an informed judgement that can contribute to a constructive debate about the effectiveness of divestment. We organize the literature into arguments for and against divestment, and explain how these relate to each other. In addition, we derive suggestions for further research on divestment