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Subjective Well-Being: Weather Matters; Climate Doesn't

Author

Listed:
  • John Feddersen

    (Department of Economics, University of Oxford)

  • Robert Metcalfe

    (Becker Friedman Institute for Research in Economics, The University of Chicago)

  • Mark Wooden

    () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

We investigate the impact of short-term weather and long-term climate on self-reported life satisfaction using panel data. We find robust evidence that day-to-day weather variation impacts life satisfaction by a similar magnitude to acquiring a mild disability. Utilizing two sources of variation in the cognitive complexity of satisfaction questions, we present evidence that weather bias arises because of the cognitive challenge of reporting life satisfaction. Consistent with past studies, we detect a relationship between long-term climate and life satisfaction without individual fixed effects. This relationship is not robust to individual fixed effects, suggesting climate does not directly influence life satisfaction.

Suggested Citation

  • John Feddersen & Robert Metcalfe & Mark Wooden, 2012. "Subjective Well-Being: Weather Matters; Climate Doesn't," Melbourne Institute Working Paper Series wp2012n25, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2012n25
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2012n25.pdf
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    References listed on IDEAS

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    Cited by:

    1. Yonas Alem & Jonathan Colmer, 2013. "Don't Worry, Be Happy: The Welfare Cost of Climate Variability � A Subjective Well-Being Approach," GRI Working Papers 118, Grantham Research Institute on Climate Change and the Environment.
    2. Alem, Yonas & Colmer, Jonathan, 2013. "Optimal Expectations and the Welfare Cost of Climate Variability," Working Papers in Economics 578, University of Gothenburg, Department of Economics.
    3. Daniel Osberghaus & Jan Kühling, 2016. "Direct and indirect effects of weather experiences on life satisfaction – which role for climate change expectations?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 59(12), pages 2198-2230, December.
    4. Barrington-Leigh, Christopher & Behzadnejad, Fatemeh, 2017. "The impact of daily weather conditions on life satisfaction: Evidence from cross-sectional and panel data," Journal of Economic Psychology, Elsevier, vol. 59(C), pages 145-163.
    5. repec:eee:ecolec:v:147:y:2018:i:c:p:96-113 is not listed on IDEAS

    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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