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| Jiakun Zheng and Yanyin Li |
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| ''The role of loss aversion in shaping environmental relocation decisions'' |
| ( 2024, Vol. 44 No.4 ) |
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| This paper utilizes data from the 2017 China Household Finance Survey (CHFS) to examine the impact of loss aversion on individuals' willingness to relocate due to environmental concerns. We find that individuals who are more loss averse are less likely to consider moving, resulting in what is called the status-quo bias. In addition, we find that individuals with stronger family ties as measured by the number of siblings and higher household fixed assets are more susceptible to these effects, implying that they are more attached to their current place of residence and less likely to relocate. |
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| Keywords: Loss aversion, Willingness to relocate, Family ties, Status-quo bias. |
JEL: D1 - Household Behavior: General
Q5 - Environmental Economics: General |
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| Manuscript Received : Jul 14 2023 | | Manuscript Accepted : Dec 30 2024 |
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