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Climate and Happiness

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Author Info
Katrin Rehdanz (Research unit Sustainability and Global Change, Hamburg)
David J. Maddison

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Abstract

Climate is an important input to many human activities. Climate affects heating and cooling requirements, determines clothing and nutritional needs and limits recreational activities. As such it is to be expected that individuals will have a preference for particular types of climate. These preferences have indeed been observed using a variety of approaches including regional analyses of wage rates and land prices, the propensity to migrate, and analyses based on household consumption patterns. Mindful of existing research this paper analyses a panel of 67 countries attempting to explain differences in self-reported levels of happiness by reference to amongst other things temperature and precipitation. Various indices are used for each of these variables including means, extremes and number of months with a particular climate like the number of hot and cold months. Using a panel-corrected least squares approach the paper demonstrates that, even when controlling for a range of other factors, climate variables have a particularly powerful effect on self reported levels of happiness. Furthermore there is a correspondence between the findings that emerge from this analysis and earlier studies with respect to what constitutes a preferred climate. The relationship between climate and self reported happiness is of particular interest because of the much discussed threat of anthropogenically induced climate change. Differential patterns of warming along with a changed distribution of rainfall promises to alter dramatically the distribution of happiness between nations with some countries moving towards a preferred climate and others moving further away. We find that higher mean temperatures in the coldest month increase happiness, whereas higher mean temperatures in the hottest month decrease happiness. Precipitation does not significantly affect happiness. In particular high latitude countries included in our dataset might benefit from temperature changes. Countries already characterized by very high summer temperatures would most likely suffer losses from climate change.

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File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/FNU20.pdf
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Publisher Info
Paper provided by Research unit Sustainability and Global Change, Hamburg University in its series Working Papers with number FNU-20.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 24 pages
Date of creation: Apr 2003
Date of revision: Apr 2003
Handle: RePEc:sgc:wpaper:20

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Related research
Keywords: amenity value; climate change; happiness; well-being;

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Find related papers by JEL classification:
R19 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Other
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
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    Other versions:
  8. Cragg, Michael & Kahn, Matthew, 1997. "New Estimates of Climate Demand: Evidence from Location Choice," Journal of Urban Economics, Elsevier, vol. 42(2), pages 261-284, September. [Downloadable!] (restricted)
    Other versions:
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  16. Frank, Robert H, 1997. "The Frame of Reference as a Public Good," Economic Journal, Royal Economic Society, vol. 107(445), pages 1832-47, November. [Downloadable!] (restricted)
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    Other versions:
  23. Selvanathan, Saroja & Selvanathan, E Antony, 1993. "A Cross-Country Analysis of Consumption Patterns," Applied Economics, Taylor and Francis Journals, vol. 25(9), pages 1245-59, September.
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Katrin Rehdanz, 2007. "Species Diversity And Human Well-Being: A Spatial Econometric Approach," Working Papers FNU-151, Research unit Sustainability and Global Change, Hamburg University, revised Oct 2007. [Downloadable!]
  2. Becchetti Leonardo & Castriota Stefano & Londoño Bedoya David Andrés, 2007. "Climate, Happiness and the Kyoto Protocol: Someone Does not Like it Hot," Departmental Working Papers 247, Tor Vergata University, CEIS. [Downloadable!]
  3. Bruno Frey & Alois Stutzer, 2005. "Happiness Research: State and Prospects," Review of Social Economy, Taylor and Francis Journals, vol. 63(2), pages 207-228, June. [Downloadable!] (restricted)
    Other versions:
  4. Castriota Stefano, 2006. "Education and Happiness: a Further Explanation to theEasterlin Paradox?," Departmental Working Papers 246, Tor Vergata University, CEIS. [Downloadable!]
  5. Martin Halla & Friedrich Schneider & Alexander Wagner, 2008. "Satisfaction with Democracy and Collective Action Problems: The Case of the Environment," Economics working papers 2008-08, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
    Other versions:
  6. Russell Smyth & Ingrid Nielsen & Qingguo Zhai & Tiemin Liu & Yin Liu & C.Y. Tang & Zhihong Wang & Zuxiang Wang & Juyong Zhang, 2008. "Environmental Surroundings And Personal Well-Being In Urban China," Monash Economics Working Papers 32/08, Monash University, Department of Economics. [Downloadable!]
    Other versions:
  7. Tol, Richard S. J., 2008. "The Social Cost of Carbon: Trends, Outliers and Catastrophes," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 2(25), pages 1-22. [Downloadable!]
    Other versions:
  8. Alexander F. Wagner & Friedrich Schneider, 2006. "Satisfaction with Democracy and the Environment in Western Europe: A Panel Analysis," IZA Discussion Papers 1929, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Nick Carroll & Paul Frijters & Michael Shields, 2009. "Quantifying the costs of drought: new evidence from life satisfaction data," Journal of Population Economics, Springer, vol. 22(2), pages 445-461, April. [Downloadable!] (restricted)
  10. Andreas Knabe & Steffen Rätzel, 2007. "Quantifying the Psychological Costs of Unemployment: The Role of Permanent Income," SOEPpapers 32, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  11. Bruno Frey & Simon Luechinger & Alois Stutzer, 2004. "Valuing Public Goods: The Life Satisfation Approach," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  12. Cahit Guven, 2008. "Reversing the Question. Does Happiness Affect Consumption and Savings Behavior?," Economics Series 2008_20, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
  13. Katrin Rehdanz & David J. Maddison, 2006. "Local Environmental Quality and Life-Satisfaction in Germany," Working Papers FNU-119, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2006. [Downloadable!]
    Other versions:
  14. Arik Levinson, 2009. "Valuing Public Goods Using Happiness Data: The Case of Air Quality," Working Papers gueconwpa~09-09-03, Georgetown University, Department of Economics. [Downloadable!]
    Other versions:
  15. Nigel Barber, 2009. "The Influence of Abnormal Sex Differences in Life Expectancy on National Happiness," Journal of Happiness Studies, Springer, vol. 10(2), pages 149-159, April. [Downloadable!] (restricted)
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