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Hedonic Pricing Of Climate Change Impacts To Households In Great Britain

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  • Katrin Rehdanz

    (Research unit Sustainability and Global Change, Hamburg)

Abstract

This study investigates the amenity value of climate to British households. By using the hedonic price approach, the marginal willingness to pay for small changes in climate variables, specified as averages and ranges, is derived. The estimates suggest that British people would typically prefer a greater distribution of precipitation across the seasons (i.e. holding annual precipitation constant, drier summers and wetter winters are preferred). Higher temperature ranges are likely to reduce welfare. Moderate global warming with warmer winters and drier summers might thus benefit British households. In particular we find that those places with little or average range in rainfall like Nottingham and those with a huge range of annual temperature like the Boroughs of London might profit. Places already characterized by a broad range of annual precipitation like Aberdare in Mid Glamorgan on the other hand would most likely lose from climate change.

Suggested Citation

  • Katrin Rehdanz, 2002. "Hedonic Pricing Of Climate Change Impacts To Households In Great Britain," Working Papers FNU-13, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2002.
    • Handle: RePEc:sgc:wpaper:13
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    References listed on IDEAS

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    Cited by:

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    2. Vaal, Albert de & Yetkiner, I. Hakan & Zon, Adriaan van, 2002. "The cyclical advancement of drastic technologies," CCSO Working Papers 200217, University of Groningen, CCSO Centre for Economic Research.
    3. Gregmar I. Galinato & Pitchayaporn Tantihkarnchana, 2018. "The amenity value of climate change across different regions in the United States," Applied Economics, Taylor & Francis Journals, vol. 50(37), pages 4024-4039, August.
    4. David Albouy & Walter Graf & Ryan Kellogg & Hendrik Wolff, 2010. "Aversion to Extreme Temperatures, Climate Change, and Quality of Life," Working Papers UWEC-2011-03, University of Washington, Department of Economics.
    5. P. Michael Link, 2003. "Auswirkungen populationsdynamischer Veränderungen in Fischbeständen auf die Fischereiwirtschaft in der Barentssee," Working Papers FNU-29, Research unit Sustainability and Global Change, Hamburg University, revised May 2003.
    6. Howard, Peter H., 2012. "Climate Change, Vegetation, and Welfare: Estimating the Welfare Loss to Landowners of Marginal Shifts in Blue Oak Habitat," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124744, Agricultural and Applied Economics Association.
    7. Hamilton, Jacqueline M., 2007. "Coastal landscape and the hedonic price of accommodation," Ecological Economics, Elsevier, vol. 62(3-4), pages 594-602, May.
    8. Zhou Yuan & Richard S.J. Tol, 2005. "Water Use in China’s Domestic, Industrial and Agricultural Sectors: An Empirical Analysis," Working Papers FNU-67, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2005.
    9. Ernest Molua, 2012. "Climate extremes, location vulnerability and private costs of property protection in Southwestern Cameroon," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 17(3), pages 293-310, March.
    10. Dritan Osmani, "undated". "A note on optimal transfer schemes, stable coalition for environmental protection and joint maximization assumption," Working Papers FNU-176, Research unit Sustainability and Global Change, Hamburg University.
    11. I. Hakan Yetkiner, 2003. "Is There An Indispensable Role For Government During Recovery From An Earthquake? A Theoretical Elaboration," Working Papers FNU-25, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
    12. Frijters, Paul & Johnston, David W. & Shields, Michael A., 2008. "Happiness Dynamics with Quarterly Life Event Data," IZA Discussion Papers 3604, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    amenity values; climate change; environmental valuation; Great Britain; hedonic pricing;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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