Some Like it (Less) Hot: Extracting Tradeoff Measures for Physically Coupled Amenities

Abstract

The Urban Heat Island (UHI) provides direct evidence of how human activities contribute to a feedback loop that can result in multiple changes in ecosystem services by creating localized warming as well as differences in vegetated landscapes in areas surrounding the urban core. This paper develops a new spatial-temporal panel estimator to recover consistent estimates of household valuation of coupled landscape and temperature ecosystem services. Using data from Phoenix, AZ, we estimate a hedonic price function using an extension of the Hausman-Taylor model. The framework adapts the earlier Abbott Klaiber [2011] proposal to overcome challenges associated with the varying spatial scales of capitalization of landscape and temperature variables and the likelihood of spatially and temporally varying omitted variables. We find a positive and economically significant marginal willingness to pay (MWTP) for measures of green landscaping at multiple spatial scales and a separate, MWTP for a one degree (F) reduction in outdoor temperatures of $56 monthly.

Subsidies for Succulents: Evaluating the Las Vegas Cash-for-Grass Rebate Program

“…The increase in local temperature driven by conversions to desert landscape, therefore, may dissipate quickly. This result stands in some contrast to Klaiber et al (2015), who find positive spillovers associated with lawns in Phoenix. Understanding exactly how landscape affects microclimates and, in turn, residential energy decisions appears to be a fruitful area for future research.…”

Latent Tastes, Incomplete Stratification, and the Plausibility of Vertical Sorting Models

“…These records are available on a monthly basis from Oregon State University at a 4 km resolution. The variable is taken from a match developed for a micro level hedonic analysis of the urban heat island effects on property values developed for the Phoenix metro area by Klaiber et al (2015). These authors attach temperatures to parcels based on the year of the housing sale.…”

Impact of Homeowner Association (HOA) landscaping guidelines on residential water use

“…Second, an HOA emphasis on less or xeric vegetation, and perhaps smaller areas of open water, must weigh the consequences of less water use against expected increases in surface and above‐ground temperatures and their impacts on energy consumption for home cooling. Third, home values may drop if the vegetation amount is reduced, owing to landscaping aesthetic preferences, as shown for other parts of the PMA [ Klaiber et al ., ; also Hayden et al ., ]. Fourth, while some species may be recommended or prohibited, CCRs tend to focus on the amount of vegetation (e.g., turf grass coverage) rather than the species allowed; the water requirements of different species of shrub and trees vary significantly.…”