DO GEOGRAPHICAL VARIATIONS IN CLIMATE INFLUENCE LIFE-SATISFACTION?

Author:

MURRAY THOMAS1,MADDISON DAVID1,REHDANZ KATRIN23

Affiliation:

1. Department of Economics, University of Birmingham, Edgbaston B15 2TT, UK

2. Department of Economics, Christian-Albrechts University of Kiel, Olshausenstrasse 40, 24118 Kiel, Germany

3. Kiel Institute for the World Economy, Hindenburgufer 66, 24105 Kiel, Germany

Abstract

Accounting for socioeconomic and demographic variables, as well as country-specific effects, households' marginal willingness to pay for climate is revealed using European data on life-satisfaction. Individuals located in areas with lower average levels of sunshine and higher average levels of relative humidity are less satisfied as are individuals in locations subject to significant seasonal variation in monthly mean temperatures and rain days. Ranking regions by climate households appear strongly to favor the Mediterranean climate over the climate of Northern Europe.

Publisher

World Scientific Pub Co Pte Lt

Subject

Management, Monitoring, Policy and Law,Economics and Econometrics,Global and Planetary Change

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