Adaptation to climate change: air-conditioning and the role of remittances

Teresa Randazzo (), Filippo Pavanello () and Enrica De Cian ()
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Teresa Randazzo: Department of Economics, Ca' Foscari University of Venice; Fondazione CMCC, RFF-CMCC EIEE
Filippo Pavanello: University of Bologna; Department of Economics, Ca' Foscari University of Venice; Fondazione CMCC, RFF-CMCC EIEE.
Enrica De Cian: Department of Economics, Ca' Foscari University of Venice; Fondazione CMCC, RFF-CMCC EIEE

No 2021:, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: Do remittances improve the ability of households to adapt to global warming? We try to answer this question by studying the behaviours of households in Mexico, a country that experiences a large and stable flow of remittances. Nationally representative household surveys indicate that Mexican households respond to the high temperature levels by purchasing air-conditioning, whose adoption is on the rise. We inquire whether and to what extent remittances are used to adopt and operate air-conditioning to maintain thermal comfort at home. We find an important role of remittances in the climate adaptation process, with large differences between coastal and inland regions, as well as among different income groups. We conclude by showing the overall increase in welfare households attain by adopting air-conditioning.

Keywords: Remittances; Air-conditioning; Climate Change Adaptation; Micro-econometrics; Mexico (search for similar items in EconPapers)
JEL-codes: D12 F24 O13 O15 Q4 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2021
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
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