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

Henry Klaiber, Joshua Abbott and V. Smith

No 21051, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: H23 H44 Q51 Q57 (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-res and nep-ure
Note: EEE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published as H. Allen Klaiber & Joshua K. Abbott & V. Kerry Smith, 2017. "Some Like It (Less) Hot: Extracting Trade-Off Measures for Physically Coupled Amenities," Journal of the Association of Environmental and Resource Economists, vol 4(4), pages 1053-1079.

Downloads: (external link)
http://www.nber.org/papers/w21051.pdf (application/pdf)

Related works:
Journal Article: Some Like It (Less) Hot: Extracting Trade-Off Measures for Physically Coupled Amenities (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:21051

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w21051

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().