Triggering precaution: Heat stress and the Chinese household saving puzzle

Xinheng Liu, Taohong You, Xin Yang and Luqing Shi

Economics Letters, 2025, vol. 253, issue C

Abstract: Utilizing survey data from the 2010–2022 China Family Panel Studies (CFPS), we investigate the Chinese household saving puzzle through the lens of heat stress. Our results show that heat stress substantially elevates household saving rates by amplifying income and expenditure uncertainties, consistent with a precautionary savings motive. Furthermore, this effect is stronger among agricultural households, those without commercial insurance, and those with lower social capital.

Keywords: Climate change; Heat stress; Household savings; Precautionary motive (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:253:y:2025:i:c:s0165176525002459

DOI: 10.1016/j.econlet.2025.112408

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