Do people habituate to air pollution? Evidence from international life satisfaction data
AbstractAir pollution constitutes one of the main environmental problems in many countries. This paper uses the life satisfaction approach to environmental valuation (LSA) to investigate whether individuals habituate to air pollution and if a potential habituation effect influences the marginal rate of substitution between air quality and income. My estimation results, based on a data set of 48 countries spanning the period 1990 to 2006, indicate that individuals do not habituate to pollution with particulate matter. Rather, I find that even past pollution levels reduce current utility. This effect tends to increase the value of pollution abatement.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 71 (2011)
Issue (Month): C ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon
Environmental quality; Non-market valuation; Marginal rate of substitution; Happiness; Life satisfaction; Well-being; Habituation; Adaptation;
Find related papers by JEL classification:
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Arik Levinson, 2013. "Happiness as a Public Policy Tool," Working Papers gueconwpa~13-13-04, Georgetown University, Department of Economics.
- 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.
- Ambrey, Christopher L. & Fleming, Christopher M., 2012. "Public greenspace and life satisfaction in urban Australia," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124302, Australian Agricultural and Resource Economics Society.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.