Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
| Session | |
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Egg-Timer: Environmental Preferences and Behavior Location: D-107 Session Chair: Subham Agarwal, KPMG | |
| Presentation 5 | |
Thinking Twice About Children: The Role of Lifetime Exposure to Climate Change European University Institute, Italy A growing number of individuals report reconsidering parenthood because of climate change, yet the underlying economic and behavioral mechanisms remain poorly understood. This paper studies how climate risk shapes fertility decisions through two channels: by tightening household resources and by increasing concern about the future conditions children would face. We combine new European survey data with a structural life-cycle model of fertility under uncertainty. The empirical evidence indicates that climate change has entered fertility decision-making: about one quarter of respondents report that it affects whether they want children, and 29% state that they would prefer larger families in its absence. Motivated by these patterns, we develop a tractable life-cycle model in which climate risk enters both the budget constraint and the value of parenthood. The model shows that climate change raises the threshold for childbearing, leading households to delay births, remain childless, or reduce completed fertility, with effects that are strongest among individuals who are both more exposed and more climate-anxious. These mechanisms deliver testable implications linking fertility choices to climate exposure and beliefs. | |

