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U.S. household preferences for climate amenities: Demographic analysis and robustness testing

Author

Listed:
  • Jared C.Carbone

    (Division of Economics and Business, Colorado School of Mines)

  • Sul-Ki Lee

    (Korean Institute for Industrial Economics and Trade)

  • Yuzhou Shen

    (Division of Economics and Business, Colorado School of Mines)

Abstract

We estimate household demand for climate amenities in the United States with two main objectives in mind: (i) to estimate model parameters with the demographic detail needed to inform climate-induced migration responses in regional population projections for use in climate impact analysis; (ii) to study the robustness of estimates from the existing literature. With respect to the former goal, we find important differences in job-related migration motives by age group and in the overall propensity to migrate among households with children. With respect to the latter aim, our framework shares a common, discrete-choice framework with other, recent attempts to recover climate preferences, allowing us to explore the consequences of a number of key assumptions in a systematic manner. Consistent with the existing literature, we find relatively robust estimates of the impact of the frequency of extreme heat days on household location decisions. The impacts of other, common measures of climate, including the frequency of extreme cold days, average summer and winter temperatures, annual precipitation, humidity and frequency of sunshine, are not identified with precision.

Suggested Citation

  • Jared C.Carbone & Sul-Ki Lee & Yuzhou Shen, 2019. "U.S. household preferences for climate amenities: Demographic analysis and robustness testing," Working Papers 2019-04, Colorado School of Mines, Division of Economics and Business.
    • Handle: RePEc:mns:wpaper:wp201904
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    File URL: http://econbus-papers.mines.edu/working-papers/wp201904.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    climate amenities; discrete choice; robustness testing;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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