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Climate Change and Recreation: Evidence from North American Cycling

Author

Listed:
  • Nathan W. Chan

    (University of Massachusetts Amherst)

  • Casey J. Wichman

    (University of Chicago
    Energy Policy Institute at the University of Chicago
    Resources for the Future)

Abstract

There is extensive research documenting the economic consequences of climate change, yet our understanding of climate impacts on nonmarket activities remains incomplete. Here, we investigate the effect of weather on recreation demand. Using data from 27 million bicycle trips in 16 North American cities, we estimate how outdoor recreation responds to daily weather fluctuations. We find empirically that cyclists dislike cold temperatures much more than hot temperatures, suggesting potential gains from warming. However, the overall response to extreme heat is mitigated, in part, by intraday adaptation towards recreating during cooler times of day. Combining these estimates with time-use survey data and climate projections, our models suggest annual surplus gains of $894 million from climate-induced cycling by mid-century.

Suggested Citation

  • Nathan W. Chan & Casey J. Wichman, 2020. "Climate Change and Recreation: Evidence from North American Cycling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(1), pages 119-151, May.
    • Handle: RePEc:kap:enreec:v:76:y:2020:i:1:d:10.1007_s10640-020-00420-5
    DOI: 10.1007/s10640-020-00420-5
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    References listed on IDEAS

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    Cited by:

    1. Parthum, Bryan & Christensen, Peter, 2022. "A market for snow: Modeling winter recreation patterns under current and future climate," Journal of Environmental Economics and Management, Elsevier, vol. 113(C).
    2. Brigitte Roth Tran, 2023. "Sellin’ in the Rain: Weather, Climate, and Retail Sales," Management Science, INFORMS, vol. 69(12), pages 7423-7447, December.
    3. Aguilar-Gomez, Sandra & Gutierrez, Emilio & Heres, David & Jaume, David & Tobal, Martin, 2024. "Thermal stress and financial distress: Extreme temperatures and firms’ loan defaults in Mexico," Journal of Development Economics, Elsevier, vol. 168(C).
    4. Bean, Richard & Pojani, Dorina & Corcoran, Jonathan, 2021. "How does weather affect bikeshare use? A comparative analysis of forty cities across climate zones," Journal of Transport Geography, Elsevier, vol. 95(C).
    5. Linsenmeier, Manuel, 2023. "Global variation in the optimal temperature for recreational outdoor activity," SocArXiv dwye8, Center for Open Science.
    6. Xi, Chen & Xie, Wei & Chen, Xiaoguang & He, Pan, 2023. "Weather shocks and movie recreation demand in China," Energy Economics, Elsevier, vol. 127(PB).
    7. Felipe González & Magdalena Larreboure, 2021. "The Impact of the Women’s March on the U.S. House Election," Documentos de Trabajo 560, Instituto de Economia. Pontificia Universidad Católica de Chile..
    8. David Boto‐García & Antonio Alvarez & José Baños, 2021. "Modelling heterogeneous preferences for nature‐based tourism trips," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1625-1653, December.
    9. Meixuan Teng & Hua Liao & Paul J. Burke & Tianqi Chen & Chen Zhang, 2022. "Adaptive responses: the effects of temperature levels on residential electricity use in China," Climatic Change, Springer, vol. 172(3), pages 1-20, June.
    10. Nathan W. Chan & Casey J. Wichman, 2022. "Valuing Nonmarket Impacts of Climate Change on Recreation: From Reduced Form to Welfare," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(1), pages 179-213, January.
    11. Xianru Han & Wenying Li & Haoluan Wang, 2024. "A Burning Issue: Wildfire Smoke Exposure, Retail Sales, and Demand for Adaptation in Healthcare," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(11), pages 3011-3039, November.
    12. Steven J. Dundas & Roger H. von Haefen, 2021. "The importance of data structure and nonlinearities in estimating climate impacts on outdoor recreation," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 107(3), pages 2053-2075, July.
    13. Wichman, Casey J. & Cunningham, Brandon, 2023. "Notching for free: Do cyclists reveal the opportunity cost of time?," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).

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    More about this item

    Keywords

    Leisure demand; Outdoor recreation; Climate change; Adaptation; Nonmarket damages; Time allocation;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

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