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Do Geographical Variations In Climate Influence Life-Satisfaction?

  • THOMAS MURRAY

    (Department of Economics, University of Birmingham, Edgbaston B15 2TT, UK)

  • DAVID MADDISON

    ()

    (Department of Economics, University of Birmingham, Edgbaston B15 2TT, UK)

  • KATRIN REHDANZ

    (Department of Economics, Christian-Albrechts University of Kiel, Olshausenstrasse 40, 24118 Kiel, Germany; Kiel Institute for the World Economy, Hindenburgufer 66, 24105 Kiel, Germany)

Accounting for socioeconomic and demographic variables, as well as country-specific effects, households' marginal willingness to pay for climate is revealed using European data on life-satisfaction. Individuals located in areas with lower average levels of sunshine and higher average levels of relative humidity are less satisfied as are individuals in locations subject to significant seasonal variation in monthly mean temperatures and rain days. Ranking regions by climate households appear strongly to favor the Mediterranean climate over the climate of Northern Europe.

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Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Climate Change Economics.

Volume (Year): 04 (2013)
Issue (Month): 01 ()
Pages: 1350004-1-1350004-21

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Handle: RePEc:wsi:ccexxx:v:04:y:2013:i:01:p:1350004-1-1350004-21
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  1. Betsey Stevenson & Justin Wolfers, 2008. "Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox," NBER Working Papers 14282, National Bureau of Economic Research, Inc.
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  8. Valerie Mueller & Glenn Sheriff, 2010. "On Hedonic Valuation of Urban Amenities Using Unbalanced Data," Land Economics, University of Wisconsin Press, vol. 86(3).
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