The Impacts of Climate Change on Household FAH Spending in the U.S

Liyuan Zhang, Mona Ahmadiani, Pourya Valizadeh, Richard Woodward and Rebecca Nemec Boehm

No 360872, 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO from Agricultural and Applied Economics Association

Abstract: This paper examines how temperature changes affect household food-at-home spending in the United States using detailed transaction data from 2004 to 2020 and a unified framework that distinguishes between short-term weather shocks and long-term climate adjustments. We decompose temperature into climate norms (20-year moving averages) and weather shocks (deviations from norms) to estimate both immediate and long-term consumption responses. Results show that higher temperatures consistently reduce food-at-home spending, with a one-degree Celsius increase in temperature shock reducing weekly spending by $0.04 and an equivalent increase in long-term climate norms reducing spending by $0.09. Using Heating and Cooling Degree Days, we find asymmetric effects: cold conditions increase food-at-home spending while hot conditions reduce it. These patterns likely reflect changes in food preservation needs, shopping frequency, and meal preparation behavior in response to temperature variations.

Keywords: Food; Security; and; Poverty (search for similar items in EconPapers)
Pages: 27
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea25:360872

DOI: 10.22004/ag.econ.360872

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