Temperature Variability and Trust in Vietnamese Rural Households

Abstract

Abstract This paper investigates the impact of climate variability on trust in Vietnamese rural households. I contribute to the existing literature, mainly focused on natural disasters, by studying the impact on trust of smooth climate changes. Climate variations are measured using deviations of the minimum temperature in June from the average. I argue that increases in this variable are relevant for the rice, which is the staple food in Viet Nam. Increases in minimum temperatures may reduce rice yields and this, in turn, may affect individuals’ propensity to cooperate. Trust is measured using VARHS survey conducted from 2008 to 2014. Estimation of a linear probability model reveals a significantly positive association between the two variables of interest, which is robust after controlling for several checks.