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

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  • 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
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    More about this item

    Keywords

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

    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

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