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Valuing US climate amenities for Americans using an hedonic pricing framework

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  • Bishwa S. Koirala
  • Alok K. Bohara

Abstract

This paper estimates the marginal willingness to pay for climate amenity in the US using hedonic pricing and wage models. Research identifies that higher January temperatures are an amenity and households are willing to pay approximately US$5.90 ($2004) per month for a 1°F increase in the January temperature. Unlike the January temperature, higher July temperatures and precipitation are both disamenities, and households seek compensation of approximately US$5.46 ($2004) per month for a 1°F increase in July temperatures and approximately US$4.50 ($2004) per month for a 1-inch increase in precipitation.

Suggested Citation

  • Bishwa S. Koirala & Alok K. Bohara, 2014. "Valuing US climate amenities for Americans using an hedonic pricing framework," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 57(6), pages 829-847, June.
    • Handle: RePEc:taf:jenpmg:v:57:y:2014:i:6:p:829-847
    DOI: 10.1080/09640568.2013.770729
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    References listed on IDEAS

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    2. Berger, Mark C. & Blomquist, Glenn C. & Sabirianova Peter, Klara, 2008. "Compensating differentials in emerging labor and housing markets: Estimates of quality of life in Russian cities," Journal of Urban Economics, Elsevier, vol. 63(1), pages 25-55, January.
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    5. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    6. Maddison, David & Bigano, Andrea, 2003. "The amenity value of the Italian climate," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 319-332, March.
    7. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    8. Timothy J. Bartik, 2008. "Measuring the Benefits of Amenity Improvements in Hedonic Price Models," Book chapters authored by Upjohn Institute researchers, in: Richard E. Just & Darrell L. Hueth & Andrew Schmitz (ed.),Applied Welfare Economics, pages 643-654, W.E. Upjohn Institute for Employment Research.
    9. Pedro Telhado Pereira & Pedro Silva Martins, 2004. "Returns to education and wage equations," Applied Economics, Taylor & Francis Journals, vol. 36(6), pages 525-531.
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    Cited by:

    1. Dan SHI & Junjie WANG, 2016. "Methods and Application of Evaluating the Economic Value of the Ecological Environment," Chinese Journal of Urban and Environmental Studies (CJUES), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 1-16, December.
    2. Koirala, Bishwa S. & Bohara, Alok K. & Berrens, Robert P., 2014. "Estimating the net implicit price of energy efficient building codes on U.S. households," Energy Policy, Elsevier, vol. 73(C), pages 667-675.

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