Full Citation

Title: The Impact of Climate Change on Household Welfare

Citation Type: Miscellaneous

Publication Year: 2009

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Abstract: This paper uses hedonic methods and variation in wages and housing costs to estimatehouseholds valuation of climate amenities. We find that, on the margin, household are willing topay more to reduce extreme heat than to reduce extreme cold. Combining these estimates withclimate forecasts for the United States, we find that an 8.3F increase in the average U.S.temperature will result in welfare losses in most areas south of Chicago. On average, the cost ofhotter summers exceeds the gain from warmer winters by 2 to 3 percent of income per year.These results account for taste heterogeneity and sorting; moreover, they are not substantiallyattenuated by allowing for migration.

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Authors: Graf, Walter; Wolff, Hendrik; Albouy, David; Kellogg, Ryan

Publisher: University of Michigan

Data Collections: IPUMS USA

Topics: Other, Poverty and Welfare

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