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Valuing The Beneficts of Air Pollution Abatement Using a Health Production Function A Case Study of Panipat Thermal Power Station, India

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  • Surender Kumar
  • D.N. Rao

Abstract

The Indian economy today is highly prone to industrial pollution and ismaking compliance decisions in order to meet environmental standards.Environmental regulations impose significant costs upon industry that arefairly high and, therefore, require economic justification. This justificationcan be given by estimating the benefits associated with these costs. Whilethe scientific rationale behind air quality preservation is well understood,its economic rationale for a developing country like India, has to beverified. The objective of the present paper is to estimate the economicvalue that people in an urban area in India (Panipat Thermal Power Station(PTPS) Colony in Panipat, Haryana) place upon improving the air quality.The dose-response method, based on the Gerking and Stanley (1986) model,is used to estimate the economic benefits of air quality improvement. Theseestimates range from one to two percent of monthly income. Income andhealth status variables were significant determinants of peoples'willingness to pay (WTP) for air quality improvements. This lends supportto the neo-conventional wisdom `act now to protect the environment beforeit is too late'. These people are ready to pay for environmentalimprovements. We do believe, however, that the relatively successfulapplication of the dose response method at PTPS colony suggests that thetechnique can be more widely applied in developing countries like India. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Surender Kumar & D.N. Rao, 2001. "Valuing The Beneficts of Air Pollution Abatement Using a Health Production Function A Case Study of Panipat Thermal Power Station, India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(2), pages 91-102, October.
    • Handle: RePEc:kap:enreec:v:20:y:2001:i:2:p:91-102
    DOI: 10.1023/A:1012635627808
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    References listed on IDEAS

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    Cited by:

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    3. Tingru Yang & Wenling Liu, 2019. "Health Effects of Energy Intensive Sectors and the Potential Health Co-Benefits of a Low Carbon Industrial Transition in China," IJERPH, MDPI, vol. 16(17), pages 1-18, August.
    4. Mariel, Petr & Khan, Mohammad Asif & Meyerhoff, Jürgen, 2022. "Valuing individuals’ preferences for air quality improvement: Evidence from a discrete choice experiment in South Delhi," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 432-447.
    5. Wenling Liu & Ziping Xu & Tianan Yang, 2018. "Health Effects of Air Pollution in China," IJERPH, MDPI, vol. 15(7), pages 1-15, July.
    6. M. Murty & Surender Kumar & Kishore Dhavala, 2007. "Measuring environmental efficiency of industry: a case study of thermal power generation in India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 31-50, September.
    7. Rong Liu & Xiaojun Liu & Bingbing Pan & Hui Zhu & Zhaokang Yuan & Yuanan Lu, 2018. "Willingness to Pay for Improved Air Quality and Influencing Factors among Manufacturing Workers in Nanchang, China," Sustainability, MDPI, vol. 10(5), pages 1-11, May.
    8. Pooja Sharma & Rupeesha Galhotra & Pooja Jain & Prarthna Aggarwal Goe & Bhoomi Aggarwal & Drishti Narula & Chitranshi Singh & Juhi Dugar & Mansi Goyal & Phalguni Sanghi & Pragati & Srishti Gupta, 2017. "Health benefits derived by reducing air pollution: An East Delhi analysis," Journal of Advances in Humanities and Social Sciences, Dr. Yi-Hsing Hsieh, vol. 3(3), pages 164-181.
    9. Zhiming Yang & Zhen Wang & Xiao-Chen Yuan & Yu Qi & Yunquan Zhang & Weiqing Wang & Fanglin He & Jing Li, 2022. "Does income inequality aggravate the impacts of air pollution on physical health? Evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2120-2144, February.
    10. Usha Gupta, 2008. "Valuation of Urban Air Pollution: A Case Study of Kanpur City in India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(3), pages 315-326, November.

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