General Knowledge about Climate Change, Factors Influencing Risk Perception and Willingness to Insure

38 Pages Posted: 17 Nov 2011

See all articles by Claas Menny

Claas Menny

Karlsruhe Institute of Technology

Daniel Osberghaus

ZEW – Leibniz Centre for European Economic Research

Max Pohl

ZEW – Leibniz Centre for European Economic Research

Ute Werner

Karlsruhe Institute of Technology

Date Written: November 16, 2011

Abstract

In two empirical surveys in Germany the link between the information respondents have about climate change and their risk perception of the phenomenon was analysed. We found that a better understanding of the effects of climate change might lead to a decrease of the perceived hazard. In contrast, a high self-declared knowledge about climate change might correspond with higher risk perception. Further factors affecting the risk perception of climate change are gender, experience of extreme weather events and trust in external aid. Surprisingly, information campaigns based on scientific facts are not effective for increasing risk perception and willingness to insure. Higher risk perception might induce higher interest in precautionary measures like insurance.

Keywords: Climate Change, Knowledge Illusion, Insurance, Risk Perception, Information, Psychometric paradigm

JEL Classification: Q54, Q58, D83

Suggested Citation

Menny, Claas and Osberghaus, Daniel and Pohl, Max and Werner, Ute, General Knowledge about Climate Change, Factors Influencing Risk Perception and Willingness to Insure (November 16, 2011). ZEW - Centre for European Economic Research Discussion Paper No. 11-060, Available at SSRN: https://ssrn.com/abstract=1960516 or http://dx.doi.org/10.2139/ssrn.1960516

Claas Menny

Karlsruhe Institute of Technology ( email )

Kaiserstraße 12
Karlsruhe, Baden Württemberg 76131
Germany

Daniel Osberghaus (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany
+49-621-1235205 (Phone)

Max Pohl

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Ute Werner

Karlsruhe Institute of Technology ( email )

Kaiserstraße 12
Karlsruhe, Baden Württemberg 76131
Germany

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