| The first chapter explains the human causes of climate change and its costs, which is estimated to be about 3.6% of GDP by the end of 21 st century (NRDC, 2008). The second chapter investigates how projected July temperatures will increase the demand for electricity in the U.S. by 0.8%, while projected January temperatures will decrease the demand for natural gas and heating oil by 1% and 2.3%, respectively. This chapter further examines effects of the energy-efficiency building codes: IECC 2003 and IECC 2006 in the U.S. in reducing the energy consumption in the U.S. households. This study finds that these state-level building codes are effective in reducing energy demand. Adoption of these codes reduces the electricity demand by 1.8%, natural gas by 1.3% and heating oil by 2.8%. A total of about 7.54 MMT per year emission reduction of CO2 is possible from the residential sector by applying such energy-efficiency building codes. This chapter further estimates an average of 1,342 kWh/Month of electricity consumption, 3,429 CFt/Month of natural gas consumption and 277 Gallon/Year of heating oil consumption per household. It also indentifies the existence of state heterogeneity that affects household level energy demand, and finds that assumption of independence of error term is violated.Chapter 3 estimates the implicit prices of climate in dollar by analyzing the hedonic rent and wage models for homeowners and apartment renters. The estimated results show that January temperature is a disamenity for which both homeowners and renters are being compensated (negative marginal willingness to pay) through U.S. by Chapter 4 uses meta-analysis to explore the environmental Kuznets curve (EKC) relationship for CO2 and several other environmental quality measures. Results indicate the presence of an EKC-type relationship for CO 2 and other environmental quality measures in relative terms. However, the predicted value of income turning point for CO2 is both extremely large in relative terms (about 10 times the world GDP per capita at the 2007 price level) and far outside the range of the data. Therefore, this study cannot accept the existence of the EKC relationship for the CO2. |
