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Climate Risk, Cooperation and the Co-Evolution of Culture and Institutions

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  • Johannes C Buggle
  • Ruben Durante

Abstract

This paper examines the relationship between economic risk and the evolution of social cooperation. We hypothesise that trust developed in pre-industrial times as a result of experiences of cooperation aimed at coping with climatic risk. We document that European regions with higher pre-industrial climatic variability display higher levels of trust today. This effect is driven by variability in the growing season months and is more pronounced in agricultural regions. Regarding possible mechanisms, our results indicate that climatic risk favoured intercommunity exchange and the early adoption of inclusive political institutions which is associated with higher quality of local governments today.

Suggested Citation

  • Johannes C Buggle & Ruben Durante, 2021. "Climate Risk, Cooperation and the Co-Evolution of Culture and Institutions," The Economic Journal, Royal Economic Society, vol. 131(637), pages 1947-1987.
    • Handle: RePEc:oup:econjl:v:131:y:2021:i:637:p:1947-1987.
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    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • N53 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: Pre-1913

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