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Population aging and environmental preferences in OECD countries: The case of air pollution

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  • Menz, Tobias
  • Welsch, Heinz

Abstract

Most industrialized countries will experience a significant aging of their populations in the future. The consequences of this coming population aging for environmental preferences and environmental quality are ambiguous. This paper uses data on life satisfaction to investigate how preferences and willingness to pay for air quality depend on the age composition of the population. Our estimation results on a panel of 25 OECD countries, spanning the period from 1990 to 2004, indicate that preferences for air quality are U-shaped in age, consistent with epidemiological evidence on the age-specific health consequences of air pollution. We find the projected future evolution of the aging process in OECD over the next two decades to imply a rise to the three-fold in the marginal willingness to pay for reduced air pollution.

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Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 69 (2010)
Issue (Month): 12 (October)
Pages: 2582-2589

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Handle: RePEc:eee:ecolec:v:69:y:2010:i:12:p:2582-2589

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Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Environmental quality Population aging Non-market valuation Willingness to pay Happiness Life satisfaction;

References

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Citations

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Cited by:
  1. Ferreira, Susana & Akay, Alpaslan & Brereton, Finbarr & Cuñado, Juncal & Martinsson, Peter & Moro, Mirko & Ningal, Tine F., 2013. "Life satisfaction and air quality in Europe," Ecological Economics, Elsevier, vol. 88(C), pages 1-10.
  2. Ambrey, Christopher L. & Chan, Andrew Yiu-Chung & Fleming, Christopher M., 2013. "Estimating the cost of air pollution in South East Queensland: An application of the life satisfaction non-market valuation approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152133, Australian Agricultural and Resource Economics Society.
  3. Heinz Welsch & Susana Ferreira, 2014. "Environment, Well-Being, and Experienced Preference," Working Papers v-367-14, University of Oldenburg, Department of Economics, revised May 2014.
  4. Juncal Cuñado & Fernando Gracia, 2013. "Environment and Happiness: New Evidence for Spain," Social Indicators Research, Springer, vol. 112(3), pages 549-567, July.
  5. Garau, Giorgio & Lecca, Patrizio & Mandras, Giovanni, 2013. "The impact of population ageing on energy use: Evidence from Italy," Economic Modelling, Elsevier, vol. 35(C), pages 970-980.

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