Climate consumption and climate pricing from 1940 to 1990

This paper studies trends in US climate consumption and climate compensating differentials. Three findings emerge. First, the population has shifted so that the consumption of warmer winter climate has risen for both working families and more dramatically for senior citizens. Second, there has been a rise in rental capitalization. Third, earnings capitalization has declined. Between 1960 and 1990, the relative price of climate has increased for senior citizens and fallen for working families. (C) 1999 Elsevier Science B.V. All rights reserved.