Adaptation to Climate Change: Airconditioning and the Role of Remittances

35 Pages Posted: 24 Nov 2021 Last revised: 24 Feb 2024

See all articles by Teresa Randazzo

Teresa Randazzo

University of Kent - Canterbury Campus

Filippo Pavanello

University of Bologna; CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici; Ca Foscari University of Venice

Enrica De Cian

Fondazione Eni Enrico Mattei (FEEM); CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Date Written: November 24, 2021

Abstract

Do remittances improve the ability of households to adapt to global warming? We try to answer this question by studying the behaviours of households in Mexico, a country that experiences a large and stable flow of remittances. Nationally representative household surveys indicate that Mexican households respond to the high temperature levels by purchasing air-conditioning, whose adoption is on the rise. We inquire whether and to what extent remittances are used to adopt and operate air-conditioning to maintain thermal comfort at home. We find an important role of remittances in the climate adaptation process, with large differences between coastal and inland regions, as well as among different income groups. We conclude by showing the overall increase in welfare households attain by adopting air-conditioning.

Keywords: Remittances, Air-conditioning, Climate Change Adaptation, Micro-econometrics, Mexico

JEL Classification: D12, O13, O15, F24, Q4

Suggested Citation

Randazzo, Teresa and Pavanello, Filippo and De Cian, Enrica, Adaptation to Climate Change: Airconditioning and the Role of Remittances (November 24, 2021). Ca' Foscari University of Venice, Department of Economics Research Paper Series No. 22/2021, Available at SSRN: https://ssrn.com/abstract=3970613 or http://dx.doi.org/10.2139/ssrn.3970613

Teresa Randazzo (Contact Author)

University of Kent - Canterbury Campus ( email )

Filippo Pavanello

University of Bologna ( email )

Bologna
Italy

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

Enrica De Cian

Fondazione Eni Enrico Mattei (FEEM) ( email )

Campo S. M. Formosa, Castello 5252
Venice, 30122
Italy

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

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