IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v97y2014icp172-181.html
   My bibliography  Save this article

Estimating the cost of air pollution in South East Queensland: An application of the life satisfaction non-market valuation approach

Author

Listed:
  • Ambrey, Christopher L.
  • Fleming, Christopher M.
  • Chan, Andrew Yiu-Chung

Abstract

Making use of data from the Household, Income and Labour Dynamics in Australia (HILDA) survey coupled with air pollution data on PM10 exceedances generated by The Air Pollution Model (TAPM), this paper employs the life satisfaction approach to estimate the cost of PM10 exceedances from human activities in South East Queensland. This paper offers an estimate of the cost of PM10 exceedances from anthropogenic activities for the region of South East Queensland and provides further evidence on the association between air pollution (PM10 exceedances) and life satisfaction. A negative relationship is found between life satisfaction and the average number of days that ambient concentrations of PM10 exceed health guidelines. This yields an implicit willingness-to-pay, in terms of annual household income, for pollution reduction of approximately AUD 5000.

Suggested Citation

  • Ambrey, Christopher L. & Fleming, Christopher M. & Chan, Andrew Yiu-Chung, 2014. "Estimating the cost of air pollution in South East Queensland: An application of the life satisfaction non-market valuation approach," Ecological Economics, Elsevier, vol. 97(C), pages 172-181.
  • Handle: RePEc:eee:ecolec:v:97:y:2014:i:c:p:172-181
    DOI: 10.1016/j.ecolecon.2013.11.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800913003479
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Pischke, Jörn-Steffen, 2011. "Money and Happiness: Evidence from the Industry Wage Structure," IZA Discussion Papers 5705, Institute for the Study of Labor (IZA).
    2. Christopher Ambrey & Christopher Fleming, 2014. "Public Greenspace and Life Satisfaction in Urban Australia," Urban Studies, Urban Studies Journal Limited, vol. 51(6), pages 1290-1321, May.
    3. Levinson, Arik, 2012. "Valuing public goods using happiness data: The case of air quality," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 869-880.
    4. A. Colin Cameron & Douglas L. Miller, 2010. "Robust Inference with Clustered Data," Working Papers 107, University of California, Davis, Department of Economics.
    5. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    6. Simon Luechinger, 2009. "Valuing Air Quality Using the Life Satisfaction Approach," Economic Journal, Royal Economic Society, vol. 119(536), pages 482-515, March.
    7. Ambrey, Christopher L. & Fleming, Christopher M., 2011. "Valuing scenic amenity using life satisfaction data," Ecological Economics, Elsevier, vol. 72(C), pages 106-115.
    8. Pischke, Jörn-Steffen & Schwandt, Hannes, 2012. "A Cautionary Note on Using Industry Affiliation to Predict Income," CEPR Discussion Papers 9131, C.E.P.R. Discussion Papers.
    9. Ferreira, Susana & Akay, Alpaslan & Brereton, Finbarr & Cuñado, Juncal & Martinsson, Peter & Moro, Mirko & Ningal, Tine F., 2013. "Life satisfaction and air quality in Europe," Ecological Economics, Elsevier, vol. 88(C), pages 1-10.
    10. Susana Ferreira & Mirko Moro, 2010. "On the Use of Subjective Well-Being Data for Environmental Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(3), pages 249-273, July.
    11. Powdthavee, Nattavudh & van den Berg, Bernard, 2011. "Putting different price tags on the same health condition: Re-evaluating the well-being valuation approach," Journal of Health Economics, Elsevier, vol. 30(5), pages 1032-1043.
    12. MacKerron, George & Mourato, Susana, 2009. "Life satisfaction and air quality in London," Ecological Economics, Elsevier, vol. 68(5), pages 1441-1453, March.
    13. Michael Shields & Stephen Wheatley Price & Mark Wooden, 2009. "Life satisfaction and the economic and social characteristics of neighbourhoods," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 421-443, April.
    14. Russell Smyth & Ingrid Nielsen & Qingguo Zhai & Tiemin Liu & Yin Liu & C.Y. Tang & Zhihong Wang & Zuxiang Wang & Juyong Zhang, 2008. "Environmental Surroundings And Personal Well-Being In Urban China," Monash Economics Working Papers 32/08, Monash University, Department of Economics.
    15. Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2010. "The Life Satisfaction Approach to Environmental Valuation," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 139-160, October.
    16. Smyth, Russell & Mishra, Vinod & Qian, Xiaolei, 2008. "The Environment and Well-Being in Urban China," Ecological Economics, Elsevier, vol. 68(1-2), pages 547-555, December.
    17. Nattavudh Powdthavee, 2010. "How much does money really matter? Estimating the causal effects of income on happiness," Empirical Economics, Springer, vol. 39(1), pages 77-92, August.
    18. Brereton, Finbarr & Clinch, J. Peter & Ferreira, Susana, 2008. "Happiness, geography and the environment," Ecological Economics, Elsevier, vol. 65(2), pages 386-396, April.
    19. Rene Bekkers, 2007. "Measuring altruistic behavior in surveys: The all-or-nothing dictator game," Artefactual Field Experiments 00102, The Field Experiments Website.
    20. Stutzer, Alois & Frey, Bruno S., 2012. "Recent Developments in the Economics of Happiness: A Selective Overview," IZA Discussion Papers 7078, Institute for the Study of Labor (IZA).
    21. M. Evans & Jonathan Kelley, 2004. "Effect of family structure on life satisfaction: australian evidence," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 69(3), pages 303-349, December.
    22. Welsch, Heinz, 2006. "Environment and happiness: Valuation of air pollution using life satisfaction data," Ecological Economics, Elsevier, vol. 58(4), pages 801-813, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Krekel, Christian & Kolbe, Jens & Wüstemann, Henry, 2016. "The greener, the happier? The effect of urban land use on residential well-being," Ecological Economics, Elsevier, vol. 121(C), pages 117-127.
    2. repec:eee:ecolec:v:137:y:2017:i:c:p:29-36 is not listed on IDEAS
    3. repec:spr:endesu:v:19:y:2017:i:3:d:10.1007_s10668-016-9771-1 is not listed on IDEAS
    4. Knight, S.J; Howley, P.;, 2017. "Can clean air make you happy? Examining the effect of nitrogen dioxide (NO2) on life satisfaction," Health, Econometrics and Data Group (HEDG) Working Papers 17/08, HEDG, c/o Department of Economics, University of York.
    5. repec:eee:ecolec:v:141:y:2017:i:c:p:245-260 is not listed on IDEAS
    6. Zerrahn, Alexander & Krekel, Christian, 2015. "Sowing the Wind and Reaping the Whirlwind? The Effect of Wind Turbines on Residential Well-Being," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112956, Verein für Socialpolitik / German Economic Association.
    7. repec:eee:ecolec:v:138:y:2017:i:c:p:82-89 is not listed on IDEAS
    8. Ambrey, Christopher L. & Fleming, Christopher M., 2014. "The causal effect of income on life satisfaction and the implications for valuing non-market goods," Economics Letters, Elsevier, vol. 123(2), pages 131-134.
    9. Christopher L. Ambrey & Christopher M. Fleming & Matthew Manning & Christine Smith, 2016. "On the Confluence of Freedom of the Press, Control of Corruption and Societal Welfare," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 859-880, September.
    10. repec:spr:jhappi:v:18:y:2017:i:5:d:10.1007_s10902-016-9775-4 is not listed on IDEAS
    11. Le Boennec, Rémy & Salladarré, Frédéric, 2017. "The impact of air pollution and noise on the real estate market. The case of the 2013 European Green Capital: Nantes, France," Ecological Economics, Elsevier, vol. 138(C), pages 82-89.
    12. Zhang, Xin & Zhang, Xiaobo & Chen, Xi, 2017. "Valuing Air Quality Using Happiness Data: The Case of China," Ecological Economics, Elsevier, vol. 137(C), pages 29-36.

    More about this item

    Keywords

    Air pollution; Happiness; Household; Income and Labour Dynamics in Australia (HILDA); Geographic information systems (GIS); Life satisfaction; PM10;

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:97:y:2014:i:c:p:172-181. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.