Observing traumatic events: Indirect effects of flood shocks on well-being and preferences

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Hannover Economic Papers (HEP) ; No. 678

Classification and Topics

• Classification: Wirtschaft ; General Welfare; Well-Being ; Valuation of Environmental Effects ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: Environmental shocks ; Perception ; Subjective well-being ; GIS data ; MODIS flood mapping

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stein, Wiebke ; Weisser, Reinhard A.
• Event: Veröffentlichung
• (who): Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
• (where): Hannover
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/235226
• Last update: 10.03.2025, 11:43 AM CET