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Pollution, Health, and Avoidance Behavior: Evidence from the Ports of Los Angeles

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  • Enrico Moretti
  • Matthew Neidell

Abstract

A pervasive problem in estimating the costs of pollution is that optimizing individuals may compensate for increases in pollution by reducing their exposure, resulting in estimates that understate the full welfare costs. To account for this issue, measurement error, and environmental confounding, we estimate the health effects of ozone using daily boat traffic at the port of Los Angeles as an instrumental variable for ozone. We estimate that ozone causes at least $44 million in annual costs in Los Angeles from respiratory related hospitalizations alone and that the cost of avoidance behavior is at least $11 million per year.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 46 (2011)
Issue (Month): 1 ()
Pages: 154-175

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Handle: RePEc:uwp:jhriss:v:46:y:2011:i:1:p:154-175

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References

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  1. Matthew Neidell, 2009. "Information, Avoidance Behavior, and Health: The Effect of Ozone on Asthma Hospitalizations," Journal of Human Resources, University of Wisconsin Press, vol. 44(2).
  2. Michael R Ransom & C. Arden Pope Iii, 1995. "External Health Costs Of A Steel Mill," Contemporary Economic Policy, Western Economic Association International, vol. 13(2), pages 86-97, 04.
  3. Janet Currie & Matthew Neidell, 2005. "Air Pollution and Infant Health: What Can We Learn from California's Recent Experience?," The Quarterly Journal of Economics, MIT Press, vol. 120(3), pages 1003-1030, August.
  4. Kenneth Y. Chay & Michael Greenstone, 1998. "Does Air Quality Matter? Evidence from the Housing Market," NBER Working Papers 6826, National Bureau of Economic Research, Inc.
  5. Seema Jayachandran, 2009. "Air Quality and Early-Life Mortality: Evidence from Indonesia’s Wildfires," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
  6. Kenneth Y. Chay & Michael Greenstone, 2003. "Air Quality, Infant Mortality, and the Clean Air Act of 1970," Working Papers 0406, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
  7. Neidell, Matthew J., 2004. "Air pollution, health, and socio-economic status: the effect of outdoor air quality on childhood asthma," Journal of Health Economics, Elsevier, vol. 23(6), pages 1209-1236, November.
  8. Kenneth Y. Chay & Michael Greenstone, 2003. "The Impact Of Air Pollution On Infant Mortality: Evidence From Geographic Variation In Pollution Shocks Induced By A Recession," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 1121-1167, August.
  9. Mansfield, Carol & Reed Johnson, F. & Van Houtven, George, 2006. "The missing piece: Valuing averting behavior for children's ozone exposures," Resource and Energy Economics, Elsevier, vol. 28(3), pages 215-228, August.
  10. Chay, Kenneth & Dobkin, Carlos & Greenstone, Michael, 2003. " The Clean Air Act of 1970 and Adult Mortality," Journal of Risk and Uncertainty, Springer, vol. 27(3), pages 279-300, December.
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Citations

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Cited by:
  1. Ziebarth, N. R.; & Schmitt, M.; & Karlsson, M.;, 2013. "The short-term population health effects of weather and pollution: implications of climate change," Health, Econometrics and Data Group (HEDG) Working Papers 13/34, HEDG, c/o Department of Economics, University of York.
  2. Coneus, Katja & Spiess, C. Katharina, 2012. "Pollution exposure and child health: Evidence for infants and toddlers in Germany," Journal of Health Economics, Elsevier, vol. 31(1), pages 180-196.
  3. Siqi Zheng & Matthew E. Kahn, 2013. "Understanding China's Urban Pollution Dynamics," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 731-72, September.
  4. Yihsu Chen & Alexander Whalley, 2012. "Green Infrastructure: The Effects of Urban Rail Transit on Air Quality," American Economic Journal: Economic Policy, American Economic Association, vol. 4(1), pages 58-97, February.
  5. Christopher R. Knittel & Douglas L. Miller & Nicholas J. Sanders, 2011. "Caution, Drivers! Children Present: Traffic, Pollution, and Infant Health," NBER Working Papers 17222, National Bureau of Economic Research, Inc.
  6. Cutler, David M. & Lange, Fabian & Meara, Ellen & Richards-Shubik, Seth & Ruhm, Christopher J., 2011. "Rising educational gradients in mortality: The role of behavioral risk factors," Journal of Health Economics, Elsevier, vol. 30(6), pages 1174-1187.
  7. Joshua Graff Zivin & Matthew Neidell, 2013. "Environment, Health, and Human Capital," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 689-730, September.
  8. Jans, Jenny & Johansson, Per & Nilsson, Peter, 2014. "Economic Status, Air Quality, and Child Health: Evidence from Inversion Episodes," IZA Discussion Papers 7929, Institute for the Study of Labor (IZA).
  9. Emmanuelle Lavaine & Matthew J. Neidell, 2013. "Energy Production and Health Externalities: Evidence from Oil Refinery Strikes in France," NBER Working Papers 18974, National Bureau of Economic Research, Inc.
  10. Deepti Goel & Sonam Gupta, 2014. "The Effect of Metro Rail on Air Pollution in Delhi," Working papers 229, Centre for Development Economics, Delhi School of Economics.
  11. Beatty, Timothy K.M. & Shimshack, Jay P., 2014. "Air pollution and children's respiratory health: A cohort analysis," Journal of Environmental Economics and Management, Elsevier, vol. 67(1), pages 39-57.
  12. Maximilian Auffhammer & Ryan Kellogg, 2011. "Clearing the Air? The Effects of Gasoline Content Regulation on Air Quality," American Economic Review, American Economic Association, vol. 101(6), pages 2687-2722, October.
  13. Beatty, Timothy K.M. & Shimshack, Jay P., 2011. "School buses, diesel emissions, and respiratory health," Journal of Health Economics, Elsevier, vol. 30(5), pages 987-999.

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