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Extreme weather events, home damage, and the eroding locus of control

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  • Nguyen, Ha Trong
  • Mitrou, Francis

Abstract

The catastrophic consequences of natural disasters on social and economic systems are extensively documented, yet their influence on individuals' sense of control over their life outcomes remains unexplored. This study pioneers an investigation into the causal effects of natural disaster-related home damage on the locus of control. Utilizing Australian longitudinal data, we implement an individual fixed effects instrumental variables approach leveraging time-varying, exogenous exposure to local cyclones to address confounding factors. Our findings provide robust evidence that natural disaster-induced home damage statistically significantly and substantially diminishes individuals' perception of control, particularly for those at the lower end of the internal locus of control distribution, who are more vulnerable. This effect is disproportionately pronounced among older individuals, renters, and those from lower-income households. This newfound understanding offers opportunities for developing targeted interventions and support mechanisms to enhance resilience and assist these vulnerable populations following natural disasters.

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  • Nguyen, Ha Trong & Mitrou, Francis, 2025. "Extreme weather events, home damage, and the eroding locus of control," Ecological Economics, Elsevier, vol. 235(C).
    • Handle: RePEc:eee:ecolec:v:235:y:2025:i:c:s0921800925001429
    DOI: 10.1016/j.ecolecon.2025.108659
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    More about this item

    Keywords

    Natural disasters; Extreme weather; Locus of control; Housing; Australia;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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