Research Triangle Institute
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NBER Working Papers and Publications
|December 2015||Household Location Decisions and the Value of Climate Amenities|
with Maureen L. Cropper, Martha Caulkins: w21826
We value climate amenities by estimating a discrete location choice model for US households. The utility of each metropolitan statistical area (MSA) depends on location-specific amenities, earnings opportunities, housing costs, and the cost of moving to the MSA from the household head’s birthplace. We use the estimated trade-off among wages, housing costs, and climate amenities to value changes in mean winter and summer temperatures. We find that households sort among MSAs as a result of heterogeneous tastes for winter and summer temperatures. Preferences for winter and summer temperatures are negatively correlated: households that prefer milder winters, on average, prefer cooler summers, and households that prefer colder winters prefer warmer summers. Households in the Midwest region, on ...
Published: Paramita Sinha & Martha L. Caulkins & Maureen L. Cropper, 2017. "Household location decisions and the value of climate amenities," Journal of Environmental Economics and Management, .
|February 2013||The Value of Climate Amenities: Evidence from US Migration Decisions|
with Maureen L. Cropper: w18756
We value climate amenities by estimating a discrete location choice model for households that changed metropolitan statistical areas (MSAs) between 1995 and 2000. The utility of each MSA depends on location-specific amenities, earnings opportunities, housing costs, and the cost of moving to the MSA from the household's 1995 location. We use the estimated trade-off between wages and climate amenities to value changes in mean winter and summer temperatures. At median temperatures for 1970 to 2000, a 1°F increase in winter temperature is worth less than a 1° decrease in summer temperature; however, the reverse is true at winter temperatures below 25°F. These results imply an average welfare loss of 2.7 percent of household income in 2020 to 2050 under the B1 (climate-friendly) scenario from t...
Published: Paramita Sinha & M Cropper, 2009. "The value of climate amenities: Evidence from migration decisions," IOP Conference Series: Earth and Environmental Science, vol 6(32).