Urban Economics and Consumer Behavior in Regard To Climate: Effects on Hedonic Prices And Urban Sprawl[Economie urbaine et comportement du consommateur face au climat. Effet sur les prix hédonistes et sur l'étalement urbain]

We present a theoretical model in which, households consume a climatic amenity, warmer climates increase an outdoor way of life (barbecue effect) and where commuting costs depend on climate (glare ice effect). We derive theoretical predictions on land rent gradients and urban sprawl. They are tested by econometric models that take into account a selection bias and endogenous variables using individual data from housing surveys. First, we estimate hedonic prices of climatic variables, second we show that were temperature is warmer urban areas are more sprawled and land rent gradients flatter. Therefore, in the French case, urban sprawl and warming reinforce each other, in an environmental vicious circle.