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Do Geographical Variations In Climate Influence Life-Satisfaction?

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Author Info

  • THOMAS MURRAY

    (Department of Economics, University of Birmingham, Edgbaston B15 2TT, UK)

  • DAVID MADDISON

    ()
    (Department of Economics, University of Birmingham, Edgbaston B15 2TT, UK)

  • KATRIN REHDANZ

    (Department of Economics, Christian-Albrechts University of Kiel, Olshausenstrasse 40, 24118 Kiel, Germany; Kiel Institute for the World Economy, Hindenburgufer 66, 24105 Kiel, Germany)

Abstract

Accounting for socioeconomic and demographic variables, as well as country-specific effects, households' marginal willingness to pay for climate is revealed using European data on life-satisfaction. Individuals located in areas with lower average levels of sunshine and higher average levels of relative humidity are less satisfied as are individuals in locations subject to significant seasonal variation in monthly mean temperatures and rain days. Ranking regions by climate households appear strongly to favor the Mediterranean climate over the climate of Northern Europe.

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Bibliographic Info

Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Climate Change Economics.

Volume (Year): 04 (2013)
Issue (Month): 01 ()
Pages: 1350004-1-1350004-21

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Handle: RePEc:wsi:ccexxx:v:04:y:2013:i:01:p:1350004-1-1350004-21

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Related research

Keywords: Life-satisfaction; Europe; willingness to pay; climate; climate change; C21; 31; Q51; Q54;

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References

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  1. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, 07.
  2. Stevenson, Betsey & Wolfers, Justin, 2008. "Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox," CEPR Discussion Papers 6944, C.E.P.R. Discussion Papers.
  3. Cragg, Michael & Kahn, Matthew, 1997. "New Estimates of Climate Demand: Evidence from Location Choice," Journal of Urban Economics, Elsevier, vol. 42(2), pages 261-284, September.
  4. David Albouy & Fernando Leibovici & Casey Warman, 2012. "Quality of Life, Firm Productivity, and the Value of Amenities across Canadian Cities," NBER Working Papers 18103, National Bureau of Economic Research, Inc.
  5. Brereton, Finbarr & Clinch, J. Peter & Ferreira, Susana, 2008. "Happiness, geography and the environment," Ecological Economics, Elsevier, vol. 65(2), pages 386-396, April.
  6. Moro, Mirko & Brereton, Finbarr & Ferreira, Susana & Clinch, J. Peter, 2008. "Ranking quality of life using subjective well-being data," Ecological Economics, Elsevier, vol. 65(3), pages 448-460, April.
  7. Richard Layard & Guy Mayraz & Stephen Nickell, 2009. "Does relative income matter? Are the critics right?," LSE Research Online Documents on Economics 28594, London School of Economics and Political Science, LSE Library.
  8. Valerie Mueller & Glenn Sheriff, 2010. "On Hedonic Valuation of Urban Amenities Using Unbalanced Data," Land Economics, University of Wisconsin Press, vol. 86(3).
  9. David J. Maddison & Katrin Rehdanz, 2004. "The Amenity Value Of Climate To Households In Germany," Working Papers FNU-39, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2005.
  10. Heinz Welsch & Jan Kühling, 2009. "Using Happiness Data For Environmental Valuation: Issues And Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 385-406, 04.
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    • Katrin Rehdanz & David J. Maddison, 2003. "Climate and Happiness," Working Papers FNU-20, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
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Cited by:
  1. Ferreira, Susana & Akay, Alpaslan & Brereton, Finbarr & Cuñado, Juncal & Martinsson, Peter & Moro, Mirko, 2012. "Life Satisfaction and Air Quality in Europe," IZA Discussion Papers 6732, Institute for the Study of Labor (IZA).
  2. Heinz Welsch & Susana Ferreira, 2014. "Environment, Well-Being, and Experienced Preference," Working Papers v-367-14, University of Oldenburg, Department of Economics, revised May 2014.

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