Climate and Reported Subjective Well-Being of Russia’s Households
G.M. MKRTCHYAN, I.YU. BLAM, S.YU. KOVALEV, YU.O. TSVELODUB
Novosibirsk National Research State University, Pirogova st., 2, Novosibirsk, 630090, Russia
Keywords: климат, изменение климата, счастье, субъективные оценки благосостояния, Россия, эконометрический анализ, climate, climate change, happiness, subjective well-being valuations, Russia, econometric analysis
Abstract
The article analyzes the impact of climate change on the overall well-being of households. It provides quantitative estimates of the dependence of subjective well-being valuations on regional climate parameters. As a hypothesis, it is assumed that subjective happiness estimates recovered via panel surveys reflect rational individual preferences that may be represented by a utility function while its parameters can be assessed with an econometric model. We conduct an econometric estimation of the parameter values of a happiness function using an ordered probit regression model. The model is built on the data provided by the Rosstat statistical agency and the primary data of the Russian Longitude Monitoring Survey (RLMS-HSE). We show that the climate factor has a highly significant effect on a respondents’ self-reported life quality valuation; as significant as the impact of other, more common factors such as money income, employment status, health condition, the quality of drinking water and air, etc. The findings may be used in the economic valuation of climate change consequences, as well as the development of policies aimed at preventing climate change.
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