Quantifying the Relationship Between Climatic Conditions and Personal Financial and Health Well‐Being

We address an important research gap by quantifying the association between weather conditions (sunshine, rainfall, temperature anomalies) and individual financial, mental and physical health self‐assessments. We compile a unique dataset of observations (1991–2018) by matching individual‐level data (covering 380 Local Authorities) from the British Household Panel & UK Household Longitudinal Surveys to monthly and daily data from 32 weather stations. We provide robust evidence that favourable climatic conditions are positively related to the likelihood of reporting higher well‐being assessments, and negatively related to adverse conditions (particularly temperature anomalies). The estimated weather monetary cost reaches 15% of monthly household income.