Utilizing theory and empirical insights from psychology and behavioral
economics, this paper examines individuals’ cognitive and motivational barriers to
adopting climate change adaptation and mitigation measures that increase consumer
This study provides the first comprehensive analysis of individual perceptions of tail risks. It focuses not only on the probability, as has been studied by Nicholas Barberis and others, but also on anticipation of damage.
Benefiting from access to detailed data on the federally run National Flood Insurance Program for the entire state of Georgia, USA, we analyze residential flood insurance purchasing behavior in that state over more than three decades (1978–2010).
In May 2014 the U.S. government released its Third National Climate Assessment report that
outlines mitigation and adaptation strategies to limit otherwise potentially severe impacts of