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Seminar: Climate Amenities, Climate Change, and American Quality of Life

Date(s): May 18, 2011, 2:00-3:30pm

Location: Room 4128, EPA West Building, 1301 Constitution Ave., NW, Washington, DC

Contact: Carl Pasurka, 202-566-2275

Presenter(s): Ryan Kellogg (Department of Economics, University of Michigan)

Description: This paper uses hedonic methods and variation in wages and housing costs to estimate households’ valuation of climate amenities. We find that, on the margin, households are willing to pay more to reduce heat than to reduce cold. Combining these estimates with “business as usual” climate forecasts for the United States, we find welfare losses in most areas by 2100. On average, the cost of hotter summers exceeds the gain from warmer winters by 1.5 to 2 percent of income per year. These results account for taste heterogeneity and sorting; moreover, they are not substantially attenuated by allowing for migration.

Seminar Category: Climate Economics