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ECIN Replication Package for "Social Learning about Climate Risks"
Principal Investigator(s): View help for Principal Investigator(s) Yilan Xu, University of Illinois at Urbana-Champaign; Sebastien Box-Couillard, University of Illinois at Urbana-Champaign
Version: View help for Version V1
Name | File Type | Size | Last Modified |
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replication_package | 11/30/2023 10:21:AM |
Project Citation:
Project Description
Abstract: This paper examines whether social learning facilitates climate risk perception updates to inform climate adaptation. We estimate a network difference-in-differences (NDID) model with a social network adjacency matrix constructed from the Facebook Social Connectedness Index (SCI). We find that regional flooding brought by Hurricanes Harvey and Irma increased flood insurance policies nationwide to the extent of each county’s social network proximity to the flooded areas. Such social learning induced 250,000 more policies in flooded counties and 81,000 more policies in unflooded counties in three years. We find evidence of the salience effect but no support for adverse selection or over-insurance.
Scope of Project
D12 Consumer Economics: Empirical Analysis
G22 Insurance; Insurance Companies; Actuarial Studies
Q54 Climate; Natural Disasters and Their Management; Global Warming
R20 Urban, Rural, Regional, Real Estate, and Transportation Economics: Household Analysis: General
Related Publications
Published Versions
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