APPENDIX ■ 285Does Climate Change Make Industrialization an Obsolete
Development Strategy for Cities in the South?
Le-Yin Zhang
Th is paper attempts to explore the implications of climate change for economic
development strategies in cities in the global South. In particular, it examines
whether climate change makes industrialization an obsolete development strat-
egy for these cities. It starts by examining the eff ects of climate change and the
challenges posed for the cities concerned, followed by a discussion of the role of
industrialization in economic development and climate change. It then inves-
tigates how these issues aff ect Southern cities by considering the experiences
of Shanghai, Mumbai, and Mexico City. In conclusion, the paper hypothesizes
that climate change will make industrialization a more, not less, important
development strategy, even for those cities that are currently aff ected by pre-
mature deindustrialization.
The Price of Climate: French Consumer Preferences Reveal Spatial
and Individual Inequalities
Jean Cavailhès, Daniel Joly, Hervé Cardot, Mohamed Hilal,
Thierry Brossard, and Pierre Wavresky
We use the hedonic price method to study consumer preferences for climate
(temperature, very hot or cold days, and rainfall) in France, a temperate coun-
try with varied climates. Data are for (1) individual attributes and prices of
houses and workers and (2) climate attributes interpolated from weather sta-
tions. We show that French households value warmer temperatures while very
hot days are a nuisance. Such climatic amenities are attributes of consumers’
utility function; nevertheless, global warming assessments by economists, such
as the Stern Review Report (2006), ignore these climatic preferences. Th e social
welfare assessment is changed when the direct consumption of climate is taken
into account: from the estimated hedonic prices, we calculate that GDP rises
by about 1 percent for a 1 degree Celsius rise in temperature. Moreover, het-
erogeneity of housing and households is a source of major diff erences in the
individual eff ects of climatic warming.
Adaptation and Mitigation: What Financing Is Available for Local
Government Investments in Developing Countries?
Thierry Paulais and Juliana Pigey
Th is article reviews specifi c funding available for adaptation and mitigation
investments of cities and discusses the mismatch between needs and fi nancing