Direct shock experience vs. tangential shock exposure: indirect effects of flood shocks on well-being and preferences

Stein, W and Weisser, RA ORCID: https://orcid.org/0000-0002-1717-5697, 2022. Direct shock experience vs. tangential shock exposure: indirect effects of flood shocks on well-being and preferences. The World Bank Economic Review: lhac012. ISSN 0258-6770

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Abstract

With extreme weather events on the rise, the question of how witnessing adverse weather events may affect individuals’ perception, and consequently their subjective well-being, gains in relevance. To identify events that have been witnessed, i.e., tangential exposure to a weather shock, satellite-based data on flooding is linked to an extensive household panel survey from rural Southeast Asia. Contrasting direct shock experience with tangential shock exposure, we find that mere proximity to a potentially adverse shock, without reporting any actual direct shock experience, could be sufficient to reduce subjective well-being. This effect is not only restricted to the present but can also impinge on expected future well-being dynamics. Eventually, such a persistent effect from witnessing a weather shock may have further politico-economic repercussions, for instance, by altering support for redistribution policies.

Item Type:	Journal article
Publication Title:	The World Bank Economic Review
Creators:	Stein, W. and Weisser, R.A.
Publisher:	Oxford University Press
Date:	31 August 2022
ISSN:	0258-6770
Identifiers:	Number Type 10.1093/wber/lhac012 DOI 1545358 Other
Rights:	© The Author(s) 2022. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial License (https://creativecommons.org/licenses/by-nc/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact journals.permissions@oup.com
Divisions:	Schools > Nottingham Business School
Record created by:	Jonathan Gallacher
Date Added:	16 May 2022 11:14
Last Modified:	13 Oct 2022 15:43
URI:	https://irep.ntu.ac.uk/id/eprint/46322

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