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DO GEOGRAPHICAL VARIATIONS IN CLIMATE INFLUENCE LIFE-SATISFACTION?

THOMAS MURRAY

Department of Economics, University of Birmingham, Edgbaston B15 2TT, UK

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DAVID MADDISON

Department of Economics, University of Birmingham, Edgbaston B15 2TT, UK

Corresponding author.

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KATRIN REHDANZ

Department of Economics, Christian-Albrechts University of Kiel, Olshausenstrasse 40, 24118 Kiel, Germany

Kiel Institute for the World Economy, Hindenburgufer 66, 24105 Kiel, Germany

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https://doi.org/10.1142/S2010007813500048Cited by:13 (Source: Crossref)

Abstract

Accounting for socioeconomic and demographic variables, as well as country-specific effects, households' marginal willingness to pay for climate is revealed using European data on life-satisfaction. Individuals located in areas with lower average levels of sunshine and higher average levels of relative humidity are less satisfied as are individuals in locations subject to significant seasonal variation in monthly mean temperatures and rain days. Ranking regions by climate households appear strongly to favor the Mediterranean climate over the climate of Northern Europe.

Keywords:

JEL: C21, 31, Q51, Q54

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