Quantifying the impact and cost of climatic conditions on personal financial and health wellbeing

Georgios Chrysanthou, Panagiotis Tzouvanas

Research output: Working paperPreprint

Abstract

This study fills an important gap in the literature by quantifying the impact and economic cost of weather conditions on group of self-assessed health and financial wellbeing indicators typically reported in survey data. We estimate the effects of sunshine, rainfall, and temperature anomalies on personal financial, mental and physical health assessments. We compile a unique dataset of >400,000 observations spanning 1991-2018 by matching individual-level data (covering 380 Local Authority Districts) from the British Household & Understanding Society Surveys to 32 weather stations. We provide novel robust evidence that good climatic conditions increase the probability to give higher assessments, while adverse conditions (particularly temperature anomalies) do the reverse. The estimated monetary cost of weather changes is as high as 20% of monthly household income.
Original languageEnglish
Number of pages38
DOIs
Publication statusPublished - 15 Aug 2023

Keywords

  • climate change
  • ordinal outcomes
  • subjective financial evaluations
  • subjective wellbeing
  • weather conditions

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