New techniques for estimating household climate preferences (and the benefits and costs of climate change)

摘要: In order to make an informed decision on the optimal reduction in greenhouse gas emissions it is necessary understand fully damage costs of climate change. However, current modelling techniques fail provide adequate emphasis important components and benefits avoided This approach risks over or underestimating true costs. Disregard for amenity value that may hold assumptions restrict geographic mobility determine rate social discounting all contribute significant error. Using spatial variations as analogue future change, this thesis finds determining desirability migration destinations holds substantial value. It also concludes more work required be confident assuming elasticity marginal utility equal unity. Alternative techniques, including subjective wellbeing hypothetical equivalence scales, are utilised avoid having potentially restrictive preferences climate. Finally, stresses importance accounting measurement error cross-sectional survey data household income. seeks inform how econometrician can seek implement appropriate instrumental variables overcome