The Amenity Value of Climate to German Households
AbstractThis study uses the hedonic approach to measure the amenity value of climate in Germany. Unlike in earlier research separate hedonic wage and house price regressions are estimated for relatively small geographic areas and formal tests undertaken to determine whether the coefficients describing the impact of climate variables are homogenous across these areas. Evidence suggests that German households are compensated for climate amenities mainly through hedonic housing markets. Given that climate is largely unproductive to industry and few industries spend more on land than labour this is consistent with what theory would predict. Throughout Germany house prices are higher in areas with higher January temperatures, lower July temperatures and lower January precipitation. In East Germany wages are higher in areas with higher January precipitation. The full implicit price of climate variables however is very uncertain.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2004.57.
Date of creation: Mar 2004
Date of revision:
Climate change; Germany; Hedonic pricing;
Other versions of this item:
- Q29 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Other
- R29 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-07-18 (All new papers)
- NEP-ENV-2004-07-18 (Environmental Economics)
- NEP-GEO-2004-07-18 (Economic Geography)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maddison, David & Bigano, Andrea, 2003. "The amenity value of the Italian climate," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 319-332, March.
- Schnare, Ann B. & Struyk, Raymond J., 1976. "Segmentation in urban housing markets," Journal of Urban Economics, Elsevier, vol. 3(2), pages 146-166, April.
- Graves, Philip E., 1980. "Migration and climate," MPRA Paper 19916, University Library of Munich, Germany.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Maddison, David, 2003. "The amenity value of the climate: the household production function approach," Resource and Energy Economics, Elsevier, vol. 25(2), pages 155-175, May.
- 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.
- Cragg, M. & Kahn, M., 1995. "New Estimates on Climate Demand: Evidence from Location Choice," Discussion Papers 1995_34, Columbia University, Department of Economics.
- Jeffrey Englin, 1996. "Estimating the amenity value of rainfall," The Annals of Regional Science, Springer, vol. 30(3), pages 273-283.
- Hamilton, Jacqueline M., 2007.
"Coastal landscape and the hedonic price of accommodation,"
Elsevier, vol. 62(3-4), pages 594-602, May.
- Jacqueline M. Hamilton, 2005. "Coastal landscape and the hedonic price of accommodation," Working Papers FNU-91, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2005.
- Paul_Cheshire & Stefano_Magrini, 2004. "Population Growth in European Cities: weather matters – but only nationally," Urban/Regional 0410001, EconWPA.
- Ernest Molua, 2012. "Climate extremes, location vulnerability and private costs of property protection in Southwestern Cameroon," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(3), pages 293-310, March.
- Rehdanz, Katrin & Maddison, David, 2005.
"Climate and happiness,"
Elsevier, vol. 52(1), pages 111-125, January.
- Dominik Weiß, 2008. "Mietpreise und Lebensqualität: Ist das Wohnen in Ostdeutschland wirklich günstig?," IWH Discussion Papers 12, Halle Institute for Economic Research.
- Weiß, Dominik, 2010. "Kompensieren Mietpreisunterschiede ungleichwertige Lebensverhältnisse?," Arbeitsmaterial der ARL: Aufsätze, in: Gleichwertigkeit der Lebensverhältnisse zwischen Politik und Marktmechanismus: Empirische Befunde aus den Ländern Sachsen, Sachsen-Anhalt und Thüri, pages 71-95 Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften.
- David Albouy & Walter Graf & Ryan Kellogg & Hendrik Wolff, 2010. "Aversion to Extreme Temperatures, Climate Change, and Quality of Life," Working Papers UWEC-2011-03, University of Washington, Department of Economics.
- Paul Cheshire & Stefano Magrini, 2005.
"Population Growth in European Cities: weather matters – but only nationally,"
- Paul Cheshire & Stefano Magrini, 2006. "Population growth in European cities: Weather matters - but only nationally," Regional Studies, Taylor and Francis Journals, vol. 40(1), pages 23-37.
- Paul Cheshire & Stefano Magrini, 2005. "Population Growth in European Cities - Weather Matters, but only Nationally," ERSA conference papers ersa05p12, European Regional Science Association.
- Gary W. Yohe & Richard S.J. Tol, 2007. "Precaution And A Dismal Theorem: Implications For Climate Policy And Climate Research," Working Papers FNU-145, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2007.
- Zhou Yuan & Richard S.J. Tol, 2005. "Water Use in China’s Domestic, Industrial and Agricultural Sectors: An Empirical Analysis," Working Papers FNU-67, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2005.
- Denis Gerstorf & Nilam Ram & Jan Goebel & Jürgen Schupp & Ulman Lindenberger & Gert G. Wagner, 2010. "Where People Live and Die Makes a Difference: Individual and Geographic Disparities in Well-Being Progression at the End of Life," SOEPpapers on Multidisciplinary Panel Data Research 287, DIW Berlin, The German Socio-Economic Panel (SOEP).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah).
If references are entirely missing, you can add them using this form.