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

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

The impact of firm technology on carbon disclosure: the critical role of stakeholder pressure

The demand for transparency about the microeconomic sources of environmental pollution has surged recently, causing carbon disclosure to rise to the top of the global climate change discourse. In this study, we empirically investigate how the environmental performance of firm production technologies shapes their voluntary carbon disclosure behaviour and how key stakeholders influence the performance-disclosure relationship. Using a panel of 1,547 firms across 24 countries covering 2006–20, we find that firms with the most efficient technologies for reducing emissions tend to disclose their carbon impact, especially when they face more stringent environmental regulations. These high-performing firms demonstrate a tendency for non-disclosure when faced with intense shareholder and environmental activist pushback against pollution. Our findings also highlight the existence of a profitability penalty for transparent high-efficiency firms relative to comparable firms that adopt strategic silence

Culture-level dimensions of social axioms and their correlates across 41 cultures

Leung and colleagues have revealed a five-dimensional structure of social axioms across individuals from five cultural groups. The present research was designed to reveal the culture level factor structure of social axioms and its correlates across 41 nations. An ecological factor analysis on the 60 items of the Social Axioms Survey extracted two factors: Dynamic Externality correlates with value measures tapping collectivism, hierarchy, and conservatism and with national indices indicative of lower social development. Societal Cynicism is less strongly and broadly correlated with previous values measures or other national indices and seems to define a novel cultural syndrome. Its national correlates suggest that it taps the cognitive component of a cultural constellation labeled maleficence, a cultural syndrome associated with a general mistrust of social systems and other people. Discussion focused on the meaning of these national level factors of beliefs and on their relationships with individual level factors of belief derived from the same data set