Ruhr Economic Papers

Ruhr Economic Papers #676

Risk Perception of Climate Change: Empirical Evidence for Germany

by Manuel Frondel, Michael Simora and Stephan Sommer

RGS, RUB, RWI, 02/2017, 34 S./p., 8 Euro, ISBN 78-3-86788-784-7 DOI: 10.4419/86788784

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Abstract

The perception of risks associated with climate change appears to be a key factor for the support of climate policy measures. Using a generalized ordered logit approach and drawing on a unique data set originating from two surveys conducted in 2012 and 2014, each among more than 6,000 German households, we analyze the determinants of individual risk perception associated with three kinds of natural hazards: heat waves, storms, and floods. Our focus is on the role of objective risk measures and experience with these natural hazards, whose frequency is likely to be affected by climate change. In line with the received literature, the results suggest that personal experience with adverse events and personal damage therefrom are strong drivers of individual risk perception.

JEL-Classification: D81, H31, Q54

Keywords: Damage experience; natural hazards; generalized ordered logit

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