Saturday, February 27, 2016

Climate Amenities, Climate Change, and American Quality of Life

We present a hedonic framework to estimate US households’ preferences over local climates, using detailed weather and 2000 Census data. We find that Americans favor a daily average temperature of 65 degrees Fahrenheit, that they will pay more on the margin to avoid excess heat than cold, and that damages increase less than linearly over extreme cold. These preferences vary by location due to sorting or adaptation. Changes in climate amenities under business-as-usual predictions imply annual are losses of 1%–4% of income by 2100, holding technology and preferences constant.
Image result for
by David Albouy, Walter Graf, Ryan Kellogg and Hendrik Wolff
Journal of the Association of Environmental and Resource Economics
Online: Jan 22, 2016
Keywords: Amenity valuation, Climate change, Hedonic model, Household sorting, Impact assessment, Quality of life.

No comments:

Post a Comment