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The Willingness to Pay for a Cooler Day: Evidence from 50 Years of Major League Baseball Games

Author

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  • Kevin Kuruc
  • Melissa LoPalo
  • Sean O'Connor

Abstract

The climate economy literature has documented adverse effects of extreme temperatures on well-being through mechanisms such as mortality, productivity, and conflict. Impacts due simply to discomfort are less well understood. This paper investigates individuals' valuations of weather using a revealed preference approach. We first quantify the decline in attendance at Major League Baseball games on hot and cold days. Leveraging this finding coupled with the historically informed assumption of a horizontal supply curve, we infer a monetized estimate of the disutility of extreme temperatures. We estimate a $1.53 utility loss per hour of exposure to high temperatures, implying nontrivial aggregate welfare effects.

Suggested Citation

  • Kevin Kuruc & Melissa LoPalo & Sean O'Connor, 2025. "The Willingness to Pay for a Cooler Day: Evidence from 50 Years of Major League Baseball Games," American Economic Journal: Applied Economics, American Economic Association, vol. 17(1), pages 126-159, January.
    • Handle: RePEc:aea:aejapp:v:17:y:2025:i:1:p:126-59
    DOI: 10.1257/app.20220606
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Z21 - Other Special Topics - - Sports Economics - - - Industry Studies

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