Urban Economics and Consumer Behavior in Regard To Climate: Effects on Hedonic Prices And Urban Sprawl

Economie urbaine et comportement du consommateur face au climat. Effet sur les prix hédonistes et sur l'étalement urbain

Jean Cavailhes, Daniel Joly (), Mohamed Hilal (), Thierry Brossard and Pierre Wavresky ()
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Daniel Joly: CNRS - Centre National de la Recherche Scientifique
Mohamed Hilal: CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRA - Institut National de la Recherche Agronomique - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement
Thierry Brossard: CNRS - Centre National de la Recherche Scientifique
Pierre Wavresky: CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRA - Institut National de la Recherche Agronomique - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement

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Abstract: We present a theoretical model in which, households consume a climatic amenity, warmer climates increase an outdoor way of life (barbecue effect) and where commuting costs depend on climate (glare ice effect). We derive theoretical predictions on land rent gradients and urban sprawl. They are tested by econometric models that take into account a selection bias and endogenous variables using individual data from housing surveys. First, we estimate hedonic prices of climatic variables, second we show that were temperature is warmer urban areas are more sprawled and land rent gradients flatter. Therefore, in the French case, urban sprawl and warming reinforce each other, in an environmental vicious circle.

Keywords: climat; france; habitat; prix hédoniste (search for similar items in EconPapers)
Date: 2014
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Published in Revue Economique, 2014, 65 (4), pp.591-619. ⟨10.3917/reco.654.0591⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02636596

DOI: 10.3917/reco.654.0591

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