Climate variations, culture and economic behaviour of Chinese households

Societies adapt to climate variations and develop unique cultures that lead distinctive economic behaviour across different regions. To estimate the climate-economic link test hypothetical role of culture, this paper uses a nationwide survey at household level in China, together with historical temperature data prefectural city for empirical analysis. The results show significant local on consumption, savings investment decisions by households. Harsh weather conditions are associated lower income higher savings. Such characteristics also probability purchasing risky financial assets. Using sample migrating families, we find strong evidence culture is an important channel relationship. Additional support view found through “catching up Joneses” effect documented economics literature. Overall, research provides alternative perspective understanding long-term behavioural impact change.