Warming Temperature and the Role of Environmental Policy in Protecting the U.S. Quality of Life

56 Pages Posted: 8 Nov 2021 Last revised: 23 Nov 2021

See all articles by Dimitrios Gounopoulos

Dimitrios Gounopoulos

University of Bath

Matthew Gustafson

Pennsylvania State University - Smeal College of Business

Tam Nguyen

University of Bath

Date Written: November 11, 2021

Abstract

We document a negative relation between abnormal temperature and quality of life in the U.S. since 1990. Cross-state and (within state-year) county-level comparisons both indicate that the temperature-quality of life relation is more positive in states adopting more stringent environmental policies prior to our sample period. Additional tests indicate no significant pre-adoption differences in the temperature-income sensitivity of adopters and non-adopters. Together, our findings suggest that U.S. quality of life is likely to deteriorate on average if rising temperature projections manifest and that enhancing current environmental policies should be added to the list of potential avenues of adaption.

Keywords: temperature shocks, climate change, quality of life, state regulations, environmental policy

JEL Classification: G24, G28, E24, H31, H74, J15, O15, R23

Suggested Citation

Gounopoulos, Dimitrios and Gustafson, Matthew and Nguyen, Tam, Warming Temperature and the Role of Environmental Policy in Protecting the U.S. Quality of Life (November 11, 2021). Available at SSRN: https://ssrn.com/abstract=3956921 or http://dx.doi.org/10.2139/ssrn.3956921

Dimitrios Gounopoulos (Contact Author)

University of Bath ( email )

School of Management,
Wessex House, Claverton Down
Bath, BA2 7AY
United Kingdom

Matthew Gustafson

Pennsylvania State University - Smeal College of Business ( email )

East Park Avenue
University Park, PA 16802
United States

Tam Nguyen

University of Bath ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

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