Title: Attention to global warming
Authors: Zhenyu Gao - Chinese University of Hong Kong (Hong Kong) [presenting]
Wenxi Jiang - Chinese University of Hong Kong (Hong Kong)
Darwin Choi - Chinese University of Hong Kong (Hong Kong)
Abstract: It is claimed that people update their beliefs about climate change when there are attention-grabbing weather events in their area. The effects of long-term global warming may be overlooked in normal times, but people revise their beliefs upwards under extreme local weather conditions. Using international data, we show that attention to climate change, proxied by Google and Bloomberg search volume, goes up when the local temperature is abnormally high. In financial markets, stocks of carbon-intensive firms underperform firms with low carbon emissions in abnormally warm weather. We shed light on understanding collective beliefs and actions in response to global warming.