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Climate Amenities, Climate Change, and American Quality of Life

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  • David Albouy
  • Walter Graf
  • Ryan Kellogg
  • Hendrik Wolff

Abstract

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 welfare losses of 1%-4% of income by 2100, holding technology and preferences constant.

Suggested Citation

  • David Albouy & Walter Graf & Ryan Kellogg & Hendrik Wolff, 2016. "Climate Amenities, Climate Change, and American Quality of Life," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(1), pages 205-246.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/684573
    DOI: 10.1086/684573
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    More about this item

    JEL classification:

    • H49 - Public Economics - - Publicly Provided Goods - - - Other
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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