#12560. The impact of economic uncertainty and trust on cooperation in environmental dilemmas across cultures

July 2026publication date
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Journal’s subject area:
Communication;
Strategy and Management;
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Abstract:
Climate change has resulted in frequent and intense droughts and floods–experienced respectively as contexts of certain loss and uncertainty–by farmers and agribusinesses. Such extreme water events, along with normal rainfall–experienced as certain gain-pose environmental dilemmas. In three studies across five countries, we examined the impact of outcome uncertainty on choices in environmental dilemmas. Cooperation was lowest in certain loss (droughts) and higher in certain gain (normal rainfall) in Study 1, a qualitative field study in Argentina. These results were experimentally replicated in the U.S. in Study 2. Study 3 empirically examined cooperative choice in India, Japan, Spain, and the U.S., replicating patterns for drought and normal rainfall. When the outcome was uncertain (floods), however, culture appeared to moderate cooperation. Two levels of trust (global and local) were also considered. Local trust was a significant predictor of cooperation.
Keywords:
Certainty; Cross Cultural; Environmental Dilemmas; Framing; Groundwater; Social Dilemmas; Trust; Uncertainty

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