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Valuing Air Quality Using Happiness Data: The Case of China

Listed author(s):
  • Zhang, Xin
  • Zhang, Xiaobo
  • Chen, Xi

This paper estimates the monetary value of cutting PM2.5, a dominant source of air pollution in China. By matching hedonic happiness in a nationally representative survey with daily air quality data according to the dates and counties of interviews in China, we are able to estimate the relationship between local concentration of particulate matter and individual happiness. By holding happiness constant, we calculate the tradeoff between the reduction in particulate matter and income, essentially a happiness-based measure of willingness-to-pay for mitigating air pollution. We find that people on average are willing to pay ¥258 ($42, or 1.8% of annual household per capita income) per year per person for a 1% reduction in PM2.5.

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File URL: http://www.sciencedirect.com/science/article/pii/S0921800916306851
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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 137 (2017)
Issue (Month): C ()
Pages: 29-36

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Handle: RePEc:eee:ecolec:v:137:y:2017:i:c:p:29-36
DOI: 10.1016/j.ecolecon.2017.02.020
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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