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

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  • Durante, Ruben
  • Buggle, Johannes

Abstract

This paper examines the relationship between economic risk and the evolution of social cooperation. We hypothesize 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 favored inter-community exchange and the early adoption of inclusive political institutions which is associated with higher quality of local governments today.

Suggested Citation

  • Durante, Ruben & Buggle, Johannes, 2017. "Climate Risk, Cooperation, and the Co-Evolution of Culture and Institutions," CEPR Discussion Papers 12380, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12380
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    References listed on IDEAS

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    More about this item

    Keywords

    climate; Trust; Cooperation; Political institutions; Persistence; Risk;
    All these keywords.

    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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