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Does drought risk depress expected well-being?

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  • Michael Berlemann
  • Marina Eurich

Abstract

The effect of natural hazard risk on individual well-being has so far largely been neglected in the empirical literature. We contribute to filling this gap by combining geo-referenced survey data with a time- and region-varying indicator of drought risk for the United States. We find that individuals living in regions with higher drought risk report significantly lower expected future life satisfaction, even after controlling for zip-code-specific, time-specific and individual-specific differences. This effect turns out to be much stronger for comparatively poor individuals.

Suggested Citation

  • Michael Berlemann & Marina Eurich, 2022. "Does drought risk depress expected well-being?," Applied Economics Letters, Taylor & Francis Journals, vol. 29(13), pages 1229-1233, July.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:13:p:1229-1233
    DOI: 10.1080/13504851.2021.1922582
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