Building an Environmental Quality Index for a big city: a spatial interpolation approach with DP2
AbstractThe elaboration of Environmental Quality Indexes (EQI) for big cities is one of the main topics in regional and environmental economics. One of the usual methodological paths consists of generating a single measure as a linear combination of several air contaminants applying Principal Component Analysis (PCA). Then, as a final step, a spatial interpolation is carried out to determine the level of contamination across the city in order to point out the so-called ‘hot points’. In this article, we propose an alternative approach to build an EQI introducing some methodological and practical novelties. From the point of view of the selection of the variables, first we will consider noise -joint to air pollution- as a relevant environmental variable. We also propose to add ‘subjective’ data -available at the census tracts level- to the group of ‘objective’ environmental variables, which are only available at a number of environmental monitoring stations. This combination leads to a mixed environmental index (MEQI), which is more complete and adequate in a socioeconomic context. From the point of view of the computation process, we use kriging to match the monitoring stations registers to the Census data. We follow an inverse process as usual, since it leads to better estimates. In a first step, we krige the environmental variables to the complete surface and finally, we elaborate the environmental index. At last, in order to build the final synthetic index, we do not use Principal Components Analysis -as it is usual in this kind of exercises- but a better one, the Pena Distance method (DP2).
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 10736.
Date of creation: 24 Sep 2008
Date of revision:
Environmental index; Air pollution; Noise; Subjecive expectations; Kriging; Distance indicators;
Find related papers by JEL classification:
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-29 (All new papers)
- NEP-ENV-2008-09-29 (Environmental Economics)
- NEP-GEO-2008-09-29 (Economic Geography)
- NEP-URE-2008-09-29 (Urban & Real Estate Economics)
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