Is sprawling residential behavior influenced by climate?

This paper addresses the question of a causal link between global warming and urban sprawl by focusing on the role local climate plays in determining household behavior regarding housing decisions. We introduce a theoretical model with a climatic amenity along urban economics lines, and consider the hypothesis that under a warmer climate, households will locate in larger plots, farther away from city centers. This hypothesis is tested empirically on household data,and by controlling for selection in simultaneous equations for housing size and distance to community center. We find evidence that housing decisions on plot size and distance to the city are related to climate differences. Global warming and urban sprawl strengthen each other in a vicious circle.