Climate Amenities and Adaptation to Climate Change: A Hedonic-Travel Cost Approach for Europe

60 Pages Posted: 3 Mar 2014

See all articles by Salvador Barrios

Salvador Barrios

European Commission, JRC - IPTS

J. Nicolás Ibañez

European Commission

Date Written: March 3, 2014

Abstract

We investigate the impact of climatic change on welfare in European regions using a hedonic travel-cost framework and focusing on tourism demand. Our hedonic price estimations combine detailed hotel price information with tourism-specific travel cost estimations for each pair of EU region. This approach allows us to estimate different valuations of climate amenities depending on time duration of holidays. In our analysis of adaptation to climate change we therefore consider holiday duration as variable of adaptation. Our findings suggest that the rise in temperature in preferred destination choices during the summer season (i.e. southern EU) is likely to yield significant welfare losses. As a result European tourists are more likely to spend shorter (and more frequent) holidays and to diversify their destination choices in order to mitigate these losses.

Keywords: Climate Change, Hedonic Prices, Travel Cost, Tourism, Europe

JEL Classification: L8, Q5

Suggested Citation

Barrios, Salvador and Ibañez, J. Nicolás, Climate Amenities and Adaptation to Climate Change: A Hedonic-Travel Cost Approach for Europe (March 3, 2014). FEEM Working Paper No. 20.2014, Available at SSRN: https://ssrn.com/abstract=2403728 or http://dx.doi.org/10.2139/ssrn.2403728

Salvador Barrios (Contact Author)

European Commission, JRC - IPTS ( email )

Edificio Expo
C/ Inca Garcilaso s/n
Seville, 41092
Spain
34 954 48 82 08 (Phone)
34 954 48 82 08 (Fax)

J. Nicolás Ibañez

European Commission ( email )

Rue de la Loi 200
Brussels, B-1049
Belgium

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