Some like it (Less) hot: Extracting trade-off measures for physically coupled amenities

H. Allen Klaiber, Joshua K. Abbott, Vincent Kerry Smith

    Research output: Contribution to journalArticlepeer-review

    15 Scopus citations


    The urban heat island (UHI) provides direct evidence of human activities contributing to a feedback loop that changes ecosystem services by creating localized warming and differences in vegetated landscapes in areas around the urban core. This paper develops a new spatial-temporal panel estimator to recover consistent estimates of households’ valuation of coupled landscape and temperature ecosystem services. Using data from Phoenix, AZ, we estimate a hedonic price function using an extension of the Hausman-Taylor model to overcome challenges associated with the varying spatial scales of capitalization of landscape and temperature variables and omitted variables. We find a positive and economically significant marginal willingness to pay (MWTP) for measures of green landscaping at multiple spatial scales and a separate MWTP for a one degree (F) reduction in outdoor temperatures of $72 monthly.

    Original languageEnglish (US)
    Pages (from-to)1053-1079
    Number of pages27
    JournalJournal of the Association of Environmental and Resource Economists
    Issue number4
    StatePublished - Dec 1 2017


    • Green landscape
    • Hausman-Taylor
    • Hedonic price model
    • Urban heat island

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Nature and Landscape Conservation
    • Management, Monitoring, Policy and Law


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