Observing traumatic events: Indirect effects of flood shocks on well-being and preferences
Wiebke Stein and
Hannover Economic Papers (HEP) from Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
This paper investigates how witnessing adverse weather events affects individuals' perceptions and consequently their personal well-being. To identify potential exposure to a weather shock, we link satellite-based data on flooding to an extensive household panel survey from rural Southeast Asia. We find that mere proximity to a potentially adverse shock, even without reporting any actual experience of the shock, can be sufficient to reduce individual well-being levels. This effect is not only restricted to the present but can also impinge on expected future well-being dynamics. Such a persistent distortionary effect from witnessing a weather shock may also have politico-economic repercussions by, for instance, altering support for redistributive policies.
Keywords: Environmental shocks; Perception; Subjective well-being; GIS data; MODIS flood mapping (search for similar items in EconPapers)
JEL-codes: I31 Q51 R23 (search for similar items in EconPapers)
Pages: 34 pages
New Economics Papers: this item is included in nep-agr, nep-env, nep-hap and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:han:dpaper:dp-678
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