New Estimates of Climate Demand: Evidence from Location Choice

Cragg, Michael; Kahn, Matthew E.

doi:10.1006/juec.1996.2027

Cited by 94 publications

(70 citation statements)

References 35 publications

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“…Key extensions of locational choice theory (Graves 1980;Haurin 1980;Roback 1982) have demonstrated the importance of amenities and disamenities to explain the locational choices of households and jobs. These include urban amenities such as culture (Glaeser et al 2001;Florida 2005) and natural amenities such as climate (Cragg and Kahn 1997) and coastlines (Rappaport and Sachs 2003;Oliva 2006); and disamenities such as crime (Cullen and Levitt 1999).…”

Section: The Urban Engineered Watershed: a Specific Model For Integramentioning

confidence: 99%

Dynamic heterogeneity: a framework to promote ecological integration and hypothesis generation in urban systems

et al. 2016

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Urban areas are understood to be extraordinarily spatially heterogeneous. Spatial heterogeneity, and its causes, consequences, and changes, are central to ecological science. The social sciences and urban design and planning professions also include spatial heterogeneity as a key concern. However, urban ecology, as a pursuit that integrates across these disciplines, lacks a theoretical framework that synthesizes the diverse and important aspects of heterogeneity. This paper presents the concept of dynamic heterogeneity as a tool to explore how social and ecological heterogeneities interact and how they together act as both an outcome of past interactions and a driver future heterogeneity and system functions. To accomplish this goal, we relate heterogeneity to the fundamental concept of the human ecosystem. The human ecosystem concept identifies key processes that require operationalized models of dynamic heterogeneity in three process realms: the flow of materials, the assembly of urban ecosystem biota, and the locational choices humans make concerning land. We exemplify a specific dynamic model of heterogeneity in each of these realms, and indicate a range of complementary statistical approaches to integrate the drivers and outcomes of dynamic heterogeneity across the three realms. We synthesize a hierarchical framework for a theory of dynamic urban heterogeneity, noting its complementarity to other major urban theories and general model approaches. We hypothesize that human actions and structures amplify the dynamics of heterogeneity in urban systems.

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Section: The Urban Engineered Watershed: a Specific Model For Integramentioning

confidence: 99%

Dynamic heterogeneity: a framework to promote ecological integration and hypothesis generation in urban systems

et al. 2016

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“…Furthermore it deals with a country where climate varies substantially over a relatively small area -something that is likely to be important for successful application of the hedonic technique 5 . 4 Recently Cragg and Kahn (1997) and Cragg and Kahn (1999) offer an approach somewhat different to earlier hedonic analyses. They estimate the demand for climate in the US based on the locational choice of migrants.…”

Section: Hedonic Studies Into the Amenity Value Of Climatementioning

confidence: 99%

The amenity value of the Italian climate

Maddison

Bigano

2003

Journal of Environmental Economics and Management

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The hedonic price literature suggests that locations with more favourable characteristics should display compensating wage and house price differentials. Estimates of the marginal willingness to pay for small changes in climate variables are derived using the hedonic price technique applied to Italian data. A hedonic price model was specified in terms of January and July averages. There exists considerable empirical support for the hypothesis that amenity values for climate are embedded in the labour and housing market. Italians would prefer a drier climate during the winter months, but higher summertime temperatures are shown to reduce welfare. These results may have relevance to the task of determining the economic impact of future climate change.

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“…Nordhaus (1996) used a hedonic wage regression corrected for differences in the cost of living to estimate the amenity value of January, April, July and October averages for temperature and precipitation. Cragg and Kahn (1997) and Cragg and Kahn (1999) estimate the demand for climate amenities using both the hedonic technique as well a technique that analyses the locational choice of migrants. Outside the United States Maddison and Bigano (2003) investigate the amenity value of climate of Italy using regional averages for expected after tax household labour income net of housing as the dependent variable.…”

Section: Introductionmentioning

confidence: 99%

The Amenity Value of Climate to German Households

Rehdanz

Maddison

2004

SSRN Journal

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This study uses the hedonic approach to measure the amenity value of climate in Germany.Unlike in earlier research separate hedonic wage and house price regressions are estimated for relatively small geographic areas and formal tests undertaken to determine whether the coefficients describing the impact of climate variables are homogenous across these areas.Evidence suggests that German households are compensated for climate amenities mainly through hedonic housing markets. Given that climate is largely unproductive to industry and few industries spend more on land than labour this is consistent with what theory would predict. Throughout Germany house prices are higher in areas with higher January temperatures, lower July temperatures and lower January precipitation. In East Germany wages are higher in areas with higher January precipitation. The full implicit price of climate variables however is very uncertain.

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New Estimates of Climate Demand: Evidence from Location Choice

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Cited by 94 publications

References 35 publications

Dynamic heterogeneity: a framework to promote ecological integration and hypothesis generation in urban systems

Dynamic heterogeneity: a framework to promote ecological integration and hypothesis generation in urban systems

The amenity value of the Italian climate

The Amenity Value of Climate to German Households

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