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 V3
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| replication_package | 01/24/2024 11:10:AM |
Project Citation:
Xu, Yilan, and Box-Couillard, Sebastien. ECIN Replication Package for “Social Learning about Climate Risks.” Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-01-24. https://doi.org/10.3886/E195462V3
Project Description
Summary:
View help for Summary
Replication code and data for Social Learning about Climate Risk.
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.
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
Subject Terms:
View help for Subject Terms
social learning;
flood insurance;
Hurricane Harvey;
social network;
SCI
JEL Classification:
View help for JEL Classification
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
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
Manuscript Number:
View help for Manuscript Number
ECIN-Dec-2022-0537.R1
Data Type(s):
View help for Data Type(s)
administrative records data;
aggregate data;
census/enumeration data;
geographic information system (GIS) data
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.