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Julian Reif's avatar

You may be interested in a recent paper by Carleton et al., which addresses some of the issues you raise, such as the relation between temperature and income:

https://academic.oup.com/qje/article/137/4/2037/6571943

One takeaway from that paper is that there is a lot of uncertainty.

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Johnathan's avatar

Here's something that seems to get lost as well: even if carbon dioxide production is as bad of externality as thought, consumption of energy is not an externality. It will always be the case that people will try to lower their gasoline, heating, cooling, and electricity bills. It becomes an even more important point when you realize that reducing energy consumption is correlated with so many other aims. Building a well insulated home isn't just good for lowering your bills. It's good for reducing noise and drafts. This is true of a lot of things too. I don't elect for paperless billing and pay my bills online to save paper. I do it so I don't have to keep track of files or go to the effort of mailing a check. I'm not interested in solar power because of the environment. I'm interested in solar because some of the nicest locations to live on lakes don't have utilities in place. I think I had heard you speak in a talk about how fast real estate is replaced, so maybe I'm touching on that point.

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