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Do Geographical Variations in Climate Influence Life Satisfaction?

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  • Thomas Murray
  • David Maddison
  • Katrin Rehdanz

Abstract

Accounting for socioeconomic and demographic variables as well as country specific effects, households’ willingness to pay for changes in climate is revealed using European data on reported 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 according to the preferred climates households appear strongly to favour the Mediterranean climate over the climate of Northern Europe

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1694.

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Length: 44 pages
Date of creation: Apr 2011
Date of revision:
Handle: RePEc:kie:kieliw:1694

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Keywords: Life Satisfaction; Europe; Willingness to Pay; Climate; Climate Change;

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References

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  1. Cragg, M. & Kahn, M., 1995. "New Estimates on Climate Demand: Evidence from Location Choice," Discussion Papers, Columbia University, Department of Economics 1995_34, Columbia University, Department of Economics.
  2. Stevenson, Betsey & Wolfers, Justin, 2008. "Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox," IZA Discussion Papers 3654, Institute for the Study of Labor (IZA).
  3. Richard Layard & Guy Mayraz & Stephen Nickell, 2009. "Does Relative Income Matter? Are the Critics Right?," CEP Discussion Papers, Centre for Economic Performance, LSE dp0918, Centre for Economic Performance, LSE.
  4. David Albouy & Fernando Leibovici & Casey Warman, 2013. "Quality of life, firm productivity, and the value of amenities across Canadian cities," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 46(2), pages 379-411, May.
  5. Ada Ferrer-i-Carbonell & Paul Frijters, 2002. "How important is Methodology for the Estimates of the Determinants of Happiness?," Tinbergen Institute Discussion Papers, Tinbergen Institute 02-024/3, Tinbergen Institute.
  6. David J. Maddison & Katrin Rehdanz, 2004. "The Amenity Value Of Climate To Households In Germany," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-39, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2005.
  7. Rehdanz, Katrin & Maddison, David, 2005. "Climate and happiness," Ecological Economics, Elsevier, Elsevier, vol. 52(1), pages 111-125, January.
  8. Heinz Welsch & Jan Kühling, 2009. "Using Happiness Data For Environmental Valuation: Issues And Applications," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 23(2), pages 385-406, 04.
  9. Valerie Mueller & Glenn Sheriff, 2010. "On Hedonic Valuation of Urban Amenities Using Unbalanced Data," Land Economics, University of Wisconsin Press, vol. 86(3).
  10. Moro, Mirko & Brereton, Finbarr & Ferreira, Susana & Clinch, J. Peter, 2008. "Ranking quality of life using subjective well-being data," Ecological Economics, Elsevier, Elsevier, vol. 65(3), pages 448-460, April.
  11. Brereton, Finbarr & Clinch, J. Peter & Ferreira, Susana, 2008. "Happiness, geography and the environment," Ecological Economics, Elsevier, Elsevier, vol. 65(2), pages 386-396, April.
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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, University of Oldenburg, Department of Economics V-367-14, University of Oldenburg, Department of Economics, revised May 2014.

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