In a recent survey of residents in the U.S. and Sweden, RFF Fellow Alan Krupnick and his colleagues in Sweden found that 92% of Swedes and 71% of Americans are willing to pay for climate change mitigation efforts. The average amount people are willing to pay to avoid a 4oF temperature rise was $306/year in Sweden and $204/year in the U.S. – amounting to between 2-3% of the respondent’s per-capita income. They were willing to pay even more if temperature increases could be held to 3oF: $330 per year in the U.S. and $552 per in Sweden. These levels of expenditure are in line with most of the economic estimates of the cost of climate change mitigation – generally thought to be between 1-3% of GDP.
Hat tip: Weathervane.