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Climate Amenities, Climate Change, and American Quality of Life

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  • David Albouy
  • Walter Graf
  • Ryan Kellogg
  • Hendrik Wolff

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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18925.

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Date of creation: Mar 2013
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Handle: RePEc:nbr:nberwo:18925

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Cited by:
  1. Thomas Aronsson & Ronnie Schöb, 2014. "Climate Change and Psychological Adaptation: A Behavioral Environmental Economics Approach," CESifo Working Paper Series 4795, CESifo Group Munich.
  2. Sinha, Paramita & Cropper, Maureen L., 2013. "The Value of Climate Amenities: Evidence from US Migration Decisions," Discussion Papers dp-13-01, Resources For the Future.
  3. Salvador Barrios & J. Nicolás Ibañez Rivas, 2014. "Climate Amenities and Adaptation to Climate Change: A Hedonic-Travel Cost Approach for Europe," Working Papers 2014.20, Fondazione Eni Enrico Mattei.
  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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