Contrasting risk preferences in the shadow of volcanic background risk: a field experiment in Arequipa, Perú.
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9 janvier 2024
- handle: 10670/1.ocwfiz
- hal: hal-04394909
- doi: 10.1080/00036846.2023.2297744
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info:eu-repo/semantics/altIdentifier/doi/10.1080/00036846.2023.2297744
Mots-clés
background risk risk preferences risk perception natural hazards C - Mathematical and Quantitative Methods/C.C9 - Design of Experiments/C.C9.C91 - Laboratory, Individual Behavior C - Mathematical and Quantitative Methods/C.C9 - Design of Experiments/C.C9.C93 - Field Experiments D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D81 - Criteria for Decision-Making under Risk and Uncertainty Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q5 - Environmental Economics/Q.Q5.Q54 - Climate • Natural Disasters and Their Management • Global WarmingSujets proches
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Mohamed Ali Bchir et al., « Contrasting risk preferences in the shadow of volcanic background risk: a field experiment in Arequipa, Perú. », HAL-SHS : économie et finance, ID : 10.1080/00036846.2023.2297744
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Résumé
We investigate the divergence in risk preferences between individuals exposed to background risk and those who are not, using a field experiment conducted in Arequipa, Peru. Arequipa, a city located in close proximity to the El Misti volcano, is constantly threatened by lahars – mudflows originating from this volcano. Our study combines experimenta l assessments of risk tolerance and patience with a targeted survey designed to assess residents’ awareness of their exposure to risks. Our primary finding reveals that residents living in hazard-prone areas exhibit higher levels of risk tolerance compared to their counterparts in safer zones. To address concerns about causality, we employ instrumental variable (IV) regressions and conduct stability analyses of coefficients. We subsequently discuss our findings in the context of the literature on preference adaptation.