Climate Amenities, Climate Change, and American Quality of Life

78 Pages Posted: 29 Mar 2013 Last revised: 19 Mar 2021

See all articles by David Albouy

David Albouy

University of Michigan at Ann Arbor - Department of Economics; National Bureau of Economic Research (NBER)

Walter Graf

University of California, Berkeley

Ryan Kellogg

University of Michigan at Ann Arbor

Hendrik Wolff

University of Washington - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: March 2013

Abstract

We present a hedonic framework to estimate U.S. households' preferences over local climates, using detailed weather and 2000 Census data. We find that Americans favor an average daily temperature of 65 degrees Fahrenheit, will pay more on the margin to avoid excess heat than cold, and are not substantially more averse to extremes than to temperatures that are merely uncomfortable. 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 to 3 percent of income by 2100, holding technology and preferences constant.

Suggested Citation

Albouy, David and Graf, Walter and Kellogg, Ryan and Wolff, Hendrik, Climate Amenities, Climate Change, and American Quality of Life (March 2013). NBER Working Paper No. w18925, Available at SSRN: https://ssrn.com/abstract=2241394

David Albouy (Contact Author)

University of Michigan at Ann Arbor - Department of Economics ( email )

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National Bureau of Economic Research (NBER) ( email )

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Walter Graf

University of California, Berkeley ( email )

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Ryan Kellogg

University of Michigan at Ann Arbor ( email )

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Ann Arbor, MI 48109
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Hendrik Wolff

University of Washington - Department of Economics ( email )

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Seattle, WA 98195-3330
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