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IF YOU CANNOT TAKE THE HEAT, GET OUT OF THE CERRADO … RECOVERING THE EQUILIBRIUM AMENITY COST OF NONMARGINAL CLIMATE CHANGE IN BRAZIL *
Author(s) -
Timmins Christopher
Publication year - 2007
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.2007.00497.x
Subject(s) - amenity , climate change , economics , natural resource economics , sorting , value (mathematics) , econometrics , microeconomics , computer science , finance , ecology , machine learning , biology , programming language
This paper presents an empirical technique for valuing large changes in nonmarketed local attributes (e.g., climate amenities) without data describing prices of locally traded commodities like housing. A model of endogenous sorting is used to identify individuals' indirect utility functions, from which the value of the change in the local attribute is recovered while accounting for equilibrium impacts on markets for labor and locally traded commodities. Annual amenity costs of Brazilian climate change are estimated to be between $1.6 and $8.1 billion for a moderate climate change scenario, depending upon the role of migration costs.