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Temperature, climate change, and household financial behaviour: Evidence from Viet Nam

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  • Sefa Awaworyi Churchill
  • Trong-Anh Trinh
  • Michael Danquah

Abstract

We examine the impact of temperature shocks and climate change on household financial behaviour in Viet Nam. To do so, we first estimate the effect of temperature on household borrowing and savings using Vietnamese longitudinal data that matches satellite reanalysis temperature data with household information over the period 2008 to 2016. We find that an additional day with an average temperature of greater than 30°C, relative to the number of days in the 18-22°C range, is associated with a 6.3 per cent decrease in household savings and a 1.4 per cent increase in household borrowing.

Suggested Citation

  • Sefa Awaworyi Churchill & Trong-Anh Trinh & Michael Danquah, 2023. "Temperature, climate change, and household financial behaviour: Evidence from Viet Nam," WIDER Working Paper Series wp-2023-95, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-95
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    References listed on IDEAS

    as
    1. Peter Warr & Waleerat Suphannachart, 2021. "Agricultural Productivity Growth and Poverty Reduction: Evidence from Thailand," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 525-546, June.
    2. Mikkel Barslund & Finn Tarp, 2008. "Formal and Informal Rural Credit in Four Provinces of Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 44(4), pages 485-503, April.
    3. Yu, Xiumei & Lei, Xiaoyan & Wang, Min, 2019. "Temperature effects on mortality and household adaptation: Evidence from China," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 195-212.
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    Keywords

    Temperature; Weather shock; Climate change; Saving; Viet Nam;
    All these keywords.

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