 Physical climate risk and household saving behavior: Evidence from ChinaJialong Li, Jiao Li and Congrong Ouyang Economic Analysis and Policy, 2025, vol. 87, issue C, 2508-2519 Abstract: Physical climate risks have increased in frequency and severity, significantly impacting household assets, health, and overall living costs. Using the China Household Finance Survey, this study investigates the influence of physical climate risks on household saving behavior among Chinese households. Our results suggest that physical climate risk exerts a positive influence on household saving rate, indicating a precautionary saving motive among households facing climate-related threats. The underlying mechanisms suggest that physical climate risk affects household saving rate via health risk and liquidity constraint. Although physical climate risks lead to higher precautionary savings, commercial insurance can mitigate the need for precautionary savings. Our findings also suggest a stronger positive causal relationship between physical climate risk and saving rate for less-educated, less risk-tolerant households, and residents of regions with adverse climate conditions and rural areas. Keywords: Household saving behavior; Physical climate risk; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:87:y:2025:i:c:p:2508-2519 DOI: 10.1016/j.eap.2025.08.025 Access Statistics for this article Economic Analysis and Policy is currently edited by Clevo Wilson More articles in Economic Analysis and Policy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.