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Do Mexicans care about air pollution?

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  • José Rodríguez-Sánchez

Abstract

Mexico has many major problems such as corruption, poverty, illiteracy, unemployment, pollution, etc. Regarding pollution, politicians have established some programs trying to improve air quality in Mexico. But they do not know if Mexicans care about air pollution or they prefer that government faces other problems. This paper answers this question and in fact, we conclude that Mexicans do care about air pollution (measured by Particulate Matter) and they agree to pay to reduce it. This paper follows a residential sorting model to calculate marginal willingness to pay for a reduction in air pollution. Our estimates imply that the household head in Mexico would pay $443.66 to $2,682.92 (in constant 2000 Mexican pesos) or 46.90–283.61 (2000 dollars) for a one-unit reduction in Particulate Matter emissions per year. Therefore, there are benefits to reduce this problem in Mexico and the government and private firms must face this problem since the costs are lower than those benefits. Copyright The Author(s) 2014

Suggested Citation

  • José Rodríguez-Sánchez, 2014. "Do Mexicans care about air pollution?," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-24, December.
    • Handle: RePEc:spr:laecrv:v:23:y:2014:i:1:p:1-24
    DOI: 10.1007/s40503-014-0009-z
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    References listed on IDEAS

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    Cited by:

    1. Chakraborti, Lopamudra & Heres, David & Hernandez, Danae, 2019. "Are land values related to ambient air pollution levels? Hedonic evidence from Mexico City," Environment and Development Economics, Cambridge University Press, vol. 24(3), pages 252-270, June.
    2. Matías Fontenla & M. Ben Goodwin & Fidel Gonzalez, 2019. "Pollution and the choice of where to work and live within Mexico City," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-17, December.

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    More about this item

    Keywords

    Particulate matter; Migration costs; Discrete choice models; Valuation of air quality in Mexico; D1; Q2; Q5; R1;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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