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Adaptation to climate variability: Evidence from German households

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  • Kussel, Gerhard

Abstract

Using panel data originating from two extensive surveys conducted in 2012 and 2014, we investigate German households' adaptation behavior in response to indoor heat stress during summer months. Providing detailed information of household characteristics, behavior and technical equipment, our unique database allows us to estimate a random-eff ects probit model on households' vulnerability and adaptive capacity. The estimates indicate that even moderate increases in temperatures are suffi cient to trigger investments in adaptation measures: While the propensity to adapt is heterogeneous across socio-economic groups, an increase of one degree Celsius in average summer temperature is associated with a rise of 2.3 percentage points in adaptation probability.

Suggested Citation

  • Kussel, Gerhard, 2016. "Adaptation to climate variability: Evidence from German households," Ruhr Economic Papers 625, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:625
    DOI: 10.4419/86788727
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    References listed on IDEAS

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    More about this item

    Keywords

    climate change; heat stress; panel data; discrete choice models;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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