Quantifying the Impact and Cost of Climatic Conditions on Personal Financial and Health Wellbeing

38 Pages Posted: 15 Aug 2023

See all articles by Georgios Chrysanthou

Georgios Chrysanthou

University of Sheffield

Panagiotis Tzouvanas

University of Portsmouth - Department of Accounting and Finance

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.

Keywords: climate change, ordinal outcomes, subjective financial evaluations, subjective wellbeing, weather conditions

Suggested Citation

Chrysanthou, Georgios and Tzouvanas, Panagiotis, Quantifying the Impact and Cost of Climatic Conditions on Personal Financial and Health Wellbeing. Available at SSRN: https://ssrn.com/abstract=4541415 or http://dx.doi.org/10.2139/ssrn.4541415

Georgios Chrysanthou

University of Sheffield ( email )

Sheffield, S10 2TN
United Kingdom

Panagiotis Tzouvanas (Contact Author)

University of Portsmouth - Department of Accounting and Finance ( email )

Portland Street
Portsmouth, Hampshire P01 3DE
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
66
Abstract Views
175
Rank
627,176
PlumX Metrics