Is Sprawling Residential Behavior Influenced by Climate?

Abstract

This paper addresses the question of a causal link between climate and urban sprawl by focusing on the role local climate plays in determining household behavior regarding housing decisions. We consider the hypothesis that under warmer climates, households exhibit “sprawling behavior”: they locate in larger plots, farther away from city centers. This hypothesis is tested empirically on household data by controlling for sample selection in simultaneous equations for housing size and distance to city center. We find evidence that such sprawling behavior is related to climate, suggesting that global warming and urban sprawl reinforce each other. (JEL C34, R14)