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Adaptation to climate change: air-conditioning and the role of remittances

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  • Teresa Randazzo

    (Department of Economics, Ca' Foscari University of Venice; Fondazione CMCC, RFF-CMCC EIEE)

  • Filippo Pavanello

    (University of Bologna; Department of Economics, Ca' Foscari University of Venice; Fondazione CMCC, RFF-CMCC EIEE.)

  • Enrica De Cian

    (Department of Economics, Ca' Foscari University of Venice; Fondazione CMCC, RFF-CMCC EIEE)

Abstract

Do remittances improve the ability of households to adapt to global warming? We try to answer this question by studying the behaviours of households in Mexico, a country that experiences a large and stable flow of remittances. Nationally representative household surveys indicate that Mexican households respond to the high temperature levels by purchasing air-conditioning, whose adoption is on the rise. We inquire whether and to what extent remittances are used to adopt and operate air-conditioning to maintain thermal comfort at home. We find an important role of remittances in the climate adaptation process, with large differences between coastal and inland regions, as well as among different income groups. We conclude by showing the overall increase in welfare households attain by adopting air-conditioning.

Suggested Citation

  • Teresa Randazzo & Filippo Pavanello & Enrica De Cian, 2021. "Adaptation to climate change: air-conditioning and the role of remittances," Working Papers 2021:, Department of Economics, University of Venice "Ca' Foscari".
  • Handle: RePEc:ven:wpaper:2021:22
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    More about this item

    Keywords

    Remittances; Air-conditioning; Climate Change Adaptation; Micro-econometrics; Mexico;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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