Does Air Pollution Change How We Take Risks? - Wei Zhang

Year
2026
Organisation
University of Birmingham
Tags
air pollution
Decision Making
Risk Taking
Behavioural Economics
Environmental Economics
cognitive performance
public health
Risk Aversion
Indonesia
satellite data
economic growth
entrepreneurship
Natural Experiment
Wind Direction
environmental health
Human Behaviour
Cognitive science
economic decision-making
climate policy
Social Science Research
Summary

This research examines whether air pollution affects risk-taking behaviour. Using survey data from 40,000 Indonesians and satellite pollution measurements, it shows that higher pollution levels make people more risk-averse. Because risk preferences influence education, careers, entrepreneurship, and innovation, cleaner air may improve both health outcomes and economic decision-making.