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Willingness to Pay for Improvements in Air Quality

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  • Pierre Thomas Léger

    ()
    (IEA, HEC Montréal)

Abstract

Central to the discussion of air quality degradation is its effect on health and the costs that it may impose on the health care system and the individuals whose health has been affected. Estimating the monetary benefits associated with improved air quality is problematic, as air (and its quality) is a public goods. By employing daily environmental data from Montreal and the Quebec Health Survey, a component of individuals’ willingness to pay for reductions in ozone is estimated building on the work of Gerking and Stanley (1986). The results suggest a significant relationship between ozone levels, health status and medical care consumption. The results also suggest that the monetary benefits from reducing ozone levels are greater than previously estimated.

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Bibliographic Info

Paper provided by HEC Montréal, Institut d'économie appliquée in its series Cahiers de recherche with number 01-02.

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Length: 34 pages
Date of creation: May 2001
Date of revision:
Handle: RePEc:iea:carech:0102

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Postal: Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7
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  1. Gerking, S.D. & Stanley, L.R., 1986. "An economic analysis of air pollution and health: The case of St. Louis," Open Access publications from Tilburg University urn:nbn:nl:ui:12-4742806, Tilburg University.
  2. Cropper, M L, 1981. "Measuring the Benefits from Reduced Morbidity," American Economic Review, American Economic Association, vol. 71(2), pages 235-40, May.
  3. Kahneman, Daniel & Knetsch, Jack L., 1992. "Valuing public goods: The purchase of moral satisfaction," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 57-70, January.
  4. Courant, Paul N. & Porter, Richard C., 1981. "Averting expenditure and the cost of pollution," Journal of Environmental Economics and Management, Elsevier, vol. 8(4), pages 321-329, December.
  5. Mordechai Shechter, 1991. "A comparative study of environmental amenity valuations," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(2), pages 129-155, June.
  6. Edna T. Loehman & Sehoon Park & David Boldt, 1994. "Willingness to Pay for Gains and Losses in Visibility and Health," Land Economics, University of Wisconsin Press, vol. 70(4), pages 478-498.
  7. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
  8. Dickie, Mark & Gerking, Shelby, 1991. "Willingness to Pay for ozone control: Inferences from the demand for medical care," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 1-16, July.
  9. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
  10. Hey, John D. & Patel, Mahesh S., 1983. "Prevention and cure? : Or: Is an ounce of prevention worth a pound of cure?," Journal of Health Economics, Elsevier, vol. 2(2), pages 119-138, August.
  11. Kohlhase, Janet E., 1991. "The impact of toxic waste sites on housing values," Journal of Urban Economics, Elsevier, vol. 30(1), pages 1-26, July.
  12. Gerking, Shelby & Stanley, Linda R, 1986. "An Economic Analysis of Air Pollution and Health: The Case of St. Louis," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 115-21, February.
  13. Portney, Paul R. & Mullahy, John, 1986. "Urban air quality and acute respiratory illness," Journal of Urban Economics, Elsevier, vol. 20(1), pages 21-38, July.
  14. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
  15. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
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