THE AMENITY VALUE OF CLIMATE TO HOUSEHOLDS IN GERMANY

David Maddison and Katrin Rehdanz

No FNU-39, Working Papers from Research unit Sustainability and Global Change, Hamburg University

Abstract: This study uses the hedonic approach to measure the amenity value of climate in Germany. Unlike in earlier research separate hedonic wage rate 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 over these areas. The evidence suggests that households in Germany 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 labor this is consistent with what theory would predict. Overall households regard higher January temperatures as an amenity but higher July temperatures as a disamenity.

Keywords: amenity value; Climate Change; Germany; Hedonic Pricing (search for similar items in EconPapers)
JEL-codes: R29 Q54 (search for similar items in EconPapers)
Date: 2004-01, Revised 2005-01
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http://www.fnu.zmaw.de/fileadmin/fnu-files/publica ... rs/FNU39_revised.pdf First version, 2004 (application/pdf)

Related works:
Journal Article: The amenity value of climate to households in Germany (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:sgc:wpaper:39

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