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Climate Amenities and Adaptation to Climate Change: A Hedonic-Travel Cost Approach for Europe

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  • Barrios, Salvador
  • Ibañez Rivas, J. Nicolás

Abstract

We investigate the impact of climatic change on welfare in European regions using a hedonic travel-cost framework and focusing on tourism demand. Our hedonic price estimations combine detailed hotel price information with tourism-specific travel cost estimations for each pair of EU region. This approach allows us to estimate different valuations of climate amenities depending on time duration of holidays. In our analysis of adaptation to climate change we therefore consider holiday duration as variable of adaptation. Our findings suggest that the rise in temperature in preferred destination choices during the summer season (i.e. southern EU) is likely to yield significant welfare losses. As a result European tourists are more likely to spend shorter (and more frequent) holidays and to diversify their destination choices in order to mitigate these losses.

Suggested Citation

  • Barrios, Salvador & Ibañez Rivas, J. Nicolás, 2014. "Climate Amenities and Adaptation to Climate Change: A Hedonic-Travel Cost Approach for Europe," Climate Change and Sustainable Development 165790, Fondazione Eni Enrico Mattei (FEEM).
  • Handle: RePEc:ags:feemcl:165790
    DOI: 10.22004/ag.econ.165790
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    Cited by:

    1. O'Donoghue, Cathal & Lopez, Jeremey & O’Neill, Stephen & Ryan, Mary, 2015. "AHedonic Price Model of Self-Assessed Agricultural Land Values," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212639, European Association of Agricultural Economists.
    2. Salvador Barrios & J. Ibañez, 2015. "Time is of the essence: adaptation of tourism demand to climate change in Europe," Climatic Change, Springer, vol. 132(4), pages 645-660, October.
    3. Jinliao He & Yanjiao Song & Xianjin Huang & Jingxia Lin, 2022. "An amenity‐based approach to excellent returning scientists' location choice in China," Papers in Regional Science, Wiley Blackwell, vol. 101(5), pages 1181-1197, October.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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