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The Economic Value of Air-Pollution-Related Health Risks in China: A Contingent Valuation Study

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  • James Hammitt

    ()

  • Ying Zhou

Abstract

The economic value of preventing adverse health effects related to air pollution is estimated using contingent valuation in three diverse locations in China. Values are estimated for three health endpoints: cold, chronic bronchitis, and fatality. Alternative statistical models are tested to study their impact on estimated willingness to pay (WTP) and on the relationship between WTP and respondent characteristics. Using the official exchange rate, the sample-average median WTP to prevent an episode of cold ranges between US$3 and US$6, the WTP to prevent a statistical case of chronic bronchitis ranges between US$500 and US$1,000, and the value per statistical life ranges between US$4,000 and US$17,000. Estimated mean values are between two and thirteen times larger. Our estimates are between about 10 and 1,000 times smaller than estimates for the US and Taiwan using official exchange rates. Indoor air quality, measured for a subset of respondents, shows no consistent relationship with WTP. Copyright Springer 2006

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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.

Volume (Year): 33 (2006)
Issue (Month): 3 (03)
Pages: 399-423

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Handle: RePEc:kap:enreec:v:33:y:2006:i:3:p:399-423

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: air quality; value per statistical life; chronic bronchitis; willingness to pay; contingent valuation; risk-risk tradeoff; mixture model; China;

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Cited by:
  1. Partridge, Ian & Gamkhar, Shama, 2010. "The role of offsets in a post-Kyoto climate agreement: The power sector in China," Energy Policy, Elsevier, vol. 38(8), pages 4457-4466, August.
  2. Taro Ohdoko & Satoru Komatsu & Shinji Kaneko, 2012. "Residential preferences for stable electricity supply and a reduction in air pollution risk: A benefit transfer study using choice modeling in China," IDEC DP2 Series 2-12, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
  3. Xiaoqi Guo & James Hammitt, 2009. "Compensating Wage Differentials with Unemployment: Evidence from China," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(2), pages 187-209, February.
  4. Brajer, Victor & Mead, Robert W. & Xiao, Feng, 2008. "Health benefits of tunneling through the Chinese environmental Kuznets curve (EKC)," Ecological Economics, Elsevier, vol. 66(4), pages 674-686, July.
  5. Roberto Ponce & Felipe Vásquez & Alejandra Stehr & Patrick Debels & Carlos Orihuela, 2011. "Estimating the Economic Value of Landscape Losses Due to Flooding by Hydropower Plants in the Chilean Patagonia," Water Resources Management, Springer, vol. 25(10), pages 2449-2466, August.
  6. Eva Kougea & Phoebe Koundouri, . "Air Quality Degradation: Can economics help in measuring its welfare effects? A Review of Economic Valuation Studies," DEOS Working Papers 1129, Athens University of Economics and Business.
  7. Bin Fang & Chun-Feng Liu & Le- Zou & Yi-Ming Wei, 2012. "The assessment of health impact caused by energy use in urban areas of China: an intake fraction–based analysis," Natural Hazards, International Society for the Prevention and Mitigation of Natural Hazards, vol. 62(1), pages 101-114, May.
  8. Ahlheim, Michael & Börger, Tobias & Frör, Oliver, 2012. "The ecological price of getting rich in a green desert: A contingent valuation study in rural Southwest China," FZID Discussion Papers 55-2012, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  9. Nicolas R. Ziebarth & Maike Schmitt & Martin Karlsson, 2014. "The Short-Term Population Health Effects of Weather and Pollution: Implications of Climate Change," SOEPpapers on Multidisciplinary Panel Data Research 646, DIW Berlin, The German Socio-Economic Panel (SOEP).
  10. Dominika Dziegielewska & Robert Mendelsohn, 2007. "Does “No” mean “No”? A protest methodology," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 38(1), pages 71-87, September.
  11. repec:ner:toulou:http://neeo.univ-tlse1.fr/3072/ is not listed on IDEAS
  12. Thijs Dekker & Roy Brouwer & Marjan Hofkes & Klaus Moeltner, 2011. "The Effect of Risk Context on the Value of a Statistical Life: a Bayesian Meta-model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 49(4), pages 597-624, August.
  13. Hoffmann, Sandra & Qin, Ping & Krupnick, Alan & Badrakh, Burmaajav & Batbaatar, Suvd & Altangerel, Enkhjargal & Sereeter, Lodoysamba, 2012. "The willingness to pay for mortality risk reductions in Mongolia," Resource and Energy Economics, Elsevier, vol. 34(4), pages 493-513.
  14. Guo, Xiaoqi & Haab, Timothy C. & Hammitt, James K., 2006. "Contingent Valuation and the Economic Value of Air-Pollution-Related Health Risks in China," 2006 Annual meeting, July 23-26, Long Beach, CA 21366, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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