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The cost of adapting to climate change: evidence from the US residential sector

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  • François Cohen
  • Matthieu Glachant
  • Magnus Söderberg

Abstract

Using household-level data from the American Housing Survey, this paper assesses the cost of adapting housing to temperature increases. The authors account for both energy use adjustments and capital adjustments through investments in weatherization and heating and cooling equipment. The authors’ best estimate of the present discounted value of the cost for adapting to the A2 ‘business-as-usual’ climate scenario by the end of the century is US$5,600 per housing unit, including both energy and investment costs. A more intense use of air conditioners will be compensated for by a reduction in heating need, leading to a shift from gas to electricity consumption.

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  • François Cohen & Matthieu Glachant & Magnus Söderberg, 2017. "The cost of adapting to climate change: evidence from the US residential sector," GRI Working Papers 263, Grantham Research Institute on Climate Change and the Environment.
    • Handle: RePEc:lsg:lsgwps:wp263
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    Cited by:

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    2. Bonan, Jacopo & Cattaneo, Cristina & d’Adda, Giovanna & Tavoni, Massimo, 2024. "Heat of the Moment: How Temperature Influences the Search and Purchase of Energy-Using Appliances," Journal of Economic Behavior & Organization, Elsevier, vol. 227(C).

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