Extreme high temperatures and adaptation by social dynamics: Theory and evidence from China

Using a novel city-level high-frequency panel dataset of social and public events in Chinese cities, we document that extreme high temperatures significantly reshape social dynamics. Extreme high temperatures increase social cooperation, and the effects are more pronounced when labor productivity is lower and environmental awareness is higher. Our estimates, combined with a quantitative model, indicate that humanity adapts to climate change in part by reshaping social dynamics. Adaptation offsets nearly 10% of the negative economic impacts of extreme high temperatures. Our quantitative analysis suggests that directly subsidizing cooperation is the most effective strategy for mitigating the adverse effects of extreme high temperatures. • Extreme high temperatures boost social cooperation. • Opportunity costs and environmental awareness drive this effect. • Past exposure to extreme heat fosters adaptive cooperation. • Cooperation offsets nearly 10% of the economic damage caused by extreme heat. • Direct subsidies for cooperation are the most effective in reducing economic losses.