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Climate Amenities, Climate Change, and American Quality of Life

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  • Albouy, David

    ()
    (University of Michigan)

  • Graf, Walter

    ()
    (University of California, Berkeley)

  • Kellogg, Ryan

    ()
    (University of Michigan)

  • Wolff, Hendrik

    ()
    (University of Washington)

Abstract

We present a hedonic framework to estimate U.S. households' preferences over local climates, using detailed weather and 2000 Census data. We find that Americans favor an average daily temperature of 65 degrees Fahrenheit, will pay more on the margin to avoid excess heat than cold, and are not substantially more averse to extremes than to temperatures that are merely uncomfortable. These preferences vary by location due to sorting or adaptation. Changes in climate amenities under business-as-usual predictions imply annual welfare losses of 1 to 3 percent of income by 2100, holding technology and preferences constant.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7339.

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Length: 76 pages
Date of creation: Apr 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7339

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Keywords: climate amenities; climate change; quality of life; temperature profiles; heterogeneous preferences;

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Cited by:
  1. Sinha, Paramita & Cropper, Maureen L., 2013. "The Value of Climate Amenities: Evidence from US Migration Decisions," Discussion Papers, Resources For the Future dp-13-01, Resources For the Future.
  2. Salvador Barrios & J. Nicolás Ibañez Rivas, 2014. "Climate Amenities and Adaptation to Climate Change: A Hedonic-Travel Cost Approach for Europe," Working Papers, Fondazione Eni Enrico Mattei 2014.20, Fondazione Eni Enrico Mattei.
  3. Thomas Aronsson & Ronnie Schöb, 2014. "Climate Change and Psychological Adaptation: A Behavioral Environmental Economics Approach," CESifo Working Paper Series 4795, CESifo Group Munich.
  4. Devin Bunten & Matthew E. Kahn, 2014. "The Impact of Emerging Climate Risks on Urban Real Estate Price Dynamics," NBER Working Papers 20018, National Bureau of Economic Research, Inc.

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