Do Households Adapt? Repeated Hurricane Exposure and the Purchasing of Bottled Water

Abstract

Understanding how households adapt to hurricanes is increasingly important as these events become more frequent and severe. This paper examines how past hurricane exposure influences current household preparedness, focusing specifically on the stockpiling of bottled water. Leveraging scanner data on bottled water purchases for households in the Southeastern United States, we employ a difference-in-differences event study framework to analyze how repeated hurricane experiences affect consumer behavior. Our results indicate that households exposed to hurricane warnings do not increase their preparedness in the subsequent hurricane season, and those experiencing a landfall event underprepare. These results suggest limited learning from past events.