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Voluntary Exposure Benefits and the Costs of Climate Change

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  • Benjamin Leard
  • Kevin Roth

Abstract

We identify behavioral responses, defined as “voluntary exposure benefits,” that have the potential to offset measured costs of climate change. We quantify these responses for the transportation sector. We find that warmer temperatures and reduced snowfall are associated with an increase in fatal accidents. While the application of these results to climate predictions suggests that weather patterns for the end of the century would lead to 381 additional fatalities per year, the associated welfare losses are almost completely offset by voluntary exposure benefits from increased traveling. Our results motivate carefully examining behavioral mechanisms to accurately estimate the welfare effects of climate change.

Suggested Citation

  • Benjamin Leard & Kevin Roth, 2019. "Voluntary Exposure Benefits and the Costs of Climate Change," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(1), pages 151-185.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/700268
    DOI: 10.1086/700268
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    Cited by:

    1. Nathan W. Chan & Casey J. Wichman, 2020. "Climate Change and Recreation: Evidence from North American Cycling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(1), pages 119-151, May.
    2. Nehiba, Cody, 2018. "Give me 3': Do minimum distance passing laws reduce bicyclist fatalities?," Economics of Transportation, Elsevier, vol. 14(C), pages 9-20.

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