DO GEOGRAPHICAL VARIATIONS IN CLIMATE INFLUENCE LIFE-SATISFACTION?

Accounting for socioeconomic and demographic variables, as well as country-specific effects, households' marginal willingness to pay for climate is revealed using European data on lifesatisfaction. Individuals located in areas with lower average levels of sunshine and higher average levels of relative humidity are less satisfied as are individuals in locations subject to significant seasonal variation in monthly mean temperatures and rain days. Ranking regions by climate households appear strongly to favor the Mediterranean climate over the climate of Northern Europe.