Valuing US climate amenities for Americans using an hedonic pricing framework

Koirala, Bishwa S.; Bohara, Alok K.

doi:10.1080/09640568.2013.770729

Cited by 7 publications

(1 citation statement)

References 23 publications

(52 reference statements)

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“…A number of housing market and wage/earning studies in the US include temperature variables, such as annual average temperature, January and July temperatures, heating and cooling degree days, and precipitation variables, such as annual or seasonal rainfall or snowfall (Hoch and Drake, 1974;Cropper and Arriaga-Salinas, 1980;Cropper, 1981;Roback, 1982;Cosgrove, 1990, 1991;Gyourko and Tracy, 1991). More recently, studies by Koirala and Bohara (2014), Albouy et al (2013), and Sinha and Cropper (2013) have used micro-level housing data similar to this study and analyzed the amenity effects of climate. Collectively, these studies provide evidence for a statistically significant role of climate in determining housing prices and wages, although studies differ in the magnitude, and sometimes direction of the effect.…”

Section: Hedonic Markets Climate and Amenity Valuesmentioning

confidence: 97%

Estimates of Changes in County-Level Housing Prices in the United States Under Scenarios of Future Climate Change

et al. 2014

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Climate in a given location influences people's housing decisions, and changes in climate may affect these decisions in ways that alter our understanding of desirable locations. This study examines the potential sensitivity of future housing prices in the United States to changes in temperature, precipitation, and humidity by developing a hedonic regression model of the relationship between climate variables and housing prices and exploring implications of different climate futures for the amenity value of climate in these prices. The model shows a significant relationship between housing prices in urban areas and certain climate variables. The study then examines the sensitivity of the amenity value of climate to future climate scenarios. Results suggest that, nationally, climate change represents a disamenity, particularly in central-to-southeastern states. However, detailed housing prices vary spatially and among scenarios. Seasonal variation in temperature, including the relative magnitudes of the change in January and July temperatures, is a key determinant of housing price change, contributing to variation across both climate scenarios and geographic location.

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