Does air pollution fuel irrational behaviors in stock investments?

This paper investigates the influence of air pollution on irrational behaviors in stock trading through behavioral experiments in laboratory, simulating air pollution by burning straw and mosquito coils. The results of this study show that air pollution significantly improves disposition effect and repurchase effect in an asymmetric way, which are thought as irrational behaviors in stock investments, making subjects prefer selling winning stocks (part of disposition effect) and repurchasing stocks that have fallen in price since the sale (part of repurchase effect). Furthermore, regret, a negative emotion, is the psychological mechanism by which air pollution influences the irrational behaviors.

The development of input-monitoring system on biofuel economics and social welfare analysis.

Biofuel production relies on stable supply of biomass which would be significantly influenced by climate-induced impacts. Since the actual agricultural outputs are relatively unpredictable in the face of uncertain environmental conditions and can only be realized in the harvest season, providing useful information regarding the stability of biomass supply to the downstream biofuel industry is crucial. This study firstly illustrates a theoretical framework to explore the resultant market equilibrium and optimal conditions of agricultural and bioenergy production in the face of highly uncertain environmental risks and then employs a two-stage stochastic programming model to investigate the optimal biofuel development and associated economic and environmental effects.