We develop empirically-grounded estimates of willingness-to-pay to avoid excess mortality risks caused by climate change. Using 40 countries’ subnational data, we estimate a mortality-temperature relationship that enables global extrapolation to countries without data and projection of its future evolution, accounting for adaptation benefits. Further, we develop a revealed preference approach to recover unobserved adaptation costs. We combine these components with 33 high-resolution climate simulations, which produces a right-skewed distribution of global WTP with a mean of $38.1 per tCO2 under a high emissions scenario. Projections generally indicate increased mortality in today’s poor locations and higher adaptation expenditures in rich ones.

More Research From These Scholars

BFI Working Paper Jan 1, 2015

Will Adaptation to Climate Change be Slow and Costly? Evidence from High Temperatures and Mortality, 1900-2004

Michael Greenstone, Alan Barreca, Karen Clay, Olivier Deschenes, Joseph Shapiro
Topics:  Energy & Environment, Healthcare
BFI Working Paper Jan 1, 2015

Are the Non-Monetary Costs of Energy Efficiency Investments Large? Understanding Low Take-up of a Free Energy Efficiency Program

Michael Greenstone, Meredith Fowlie, Catherine Wolfram
Topics:  Energy & Environment, Healthcare
BFI Working Paper Jan 1, 2016

Will We Ever Stop Using Fossil Fuels?

Thomas Covert, Michael Greenstone, Christopher R. Knittel
Topics:  Energy & Environment, Financial Markets, Monetary Policy, Tax & Budget, Healthcare