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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. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 114(497), pages 641-659, 07.
  2. Richard Layard & Guy Mayraz & Stephen Nickell, 2009. "Does Relative Income Matter?: Are the Critics Right?," SOEPpapers on Multidisciplinary Panel Data Research 210, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Betsey Stevenson & Justin Wolfers, 2008. "Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox," NBER Working Papers 14282, National Bureau of Economic Research, Inc.
  4. Katrin Rehdanz & David Maddison, 2009. "The amenity value of climate to households in Germany," Oxford Economic Papers, Oxford University Press, vol. 61(1), pages 150-167, January.
  5. 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, vol. 46(2), pages 379-411, May.
  6. Katrin Rehdanz & David J. Maddison, 2003. "Climate and Happiness," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-20, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
  7. Brereton, Finbarr & Clinch, J. Peter & Ferreira, Susana, 2008. "Happiness, geography and the environment," Ecological Economics, Elsevier, vol. 65(2), pages 386-396, April.
  8. 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.
  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. 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.
  11. 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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Cited by:
  1. Akay, Alpaslan & Brereton, Finbarr & Cunado, Juncal & Ferreira, Susana & Martinsson, Peter & Moro, Mirko & Ningal, Tine F, 2013. "Life Satisfaction and Air Quality in Europe," Stirling Economics Discussion Papers, University of Stirling, Division of Economics 2013-02, University of Stirling, Division of Economics.
  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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