IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v20y2001i2p91-102.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1012635627808
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1012635627808?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Gerking, Shelby & Stanley, Linda R, 1986. "An Economic Analysis of Air Pollution and Health: The Case of St. Louis," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 115-121, February.
    2. Harford, Jon D., 1984. "Averting behavior and the benefits of reduced soiling," Journal of Environmental Economics and Management, Elsevier, vol. 11(3), pages 296-302, September.
    3. KyeongAe Choe & Dale Whittington & Donald T. Lauria, 1996. "The Economic Benefits of Surface Water Quality Improvements in Developing Countries: A Case Study of Davao, Philippines," Land Economics, University of Wisconsin Press, vol. 72(4), pages 519-537.
    4. Cropper, Maureen L. & Simon, Nathalie B. & Alberini, Anna & Sharma, P. K., 1997. "The health effects of air pollution in Delhi, India," Policy Research Working Paper Series 1860, The World Bank.
    5. Mishan, E J, 1974. "What Is the Optimal Level of Pollution?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1287-1299, Nov.-Dec..
    6. Courant, Paul N. & Porter, Richard C., 1981. "Averting expenditure and the cost of pollution," Journal of Environmental Economics and Management, Elsevier, vol. 8(4), pages 321-329, December.
    7. repec:bla:econom:v:50:y:1983:i:200:p:425-37 is not listed on IDEAS
    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. 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.
    2. 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.
    3. Zhou, Kaile & Yang, Shanlin & Shen, Chao & Ding, Shuai & Sun, Chaoping, 2015. "Energy conservation and emission reduction of China’s electric power industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 10-19.
    4. Bertinelli, Luisito & Camacho, Carmen & Zou, Benteng, 2014. "Carbon capture and storage and transboundary pollution: A differential game approach," European Journal of Operational Research, Elsevier, vol. 237(2), pages 721-728.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. Wenling Liu & Ziping Xu & Tianan Yang, 2018. "Health Effects of Air Pollution in China," IJERPH, MDPI, vol. 15(7), pages 1-15, July.
    10. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bruno Lanz, 2015. "Avertive expenditures, endogenous quality perception, and the demand for public goods: An instrumental variable approach," CIES Research Paper series 36-2015, Centre for International Environmental Studies, The Graduate Institute.
    2. Marta Suárez-Varela & Ariel Dinar, 2020. "The Role of Curtailment Versus Efficiency on Spillovers Among Pro-Environmental Behaviors: Evidence from Two Towns in Granada, Spain," Sustainability, MDPI, vol. 12(3), pages 1-24, January.
    3. repec:gii:ciesrp:cies_rp_36rev is not listed on IDEAS
    4. Lanz, Bruno & Provins, Allan, 2017. "Using averting expenditures to estimate the demand for public goods: Combining objective and perceived quality," Resource and Energy Economics, Elsevier, vol. 47(C), pages 20-35.
    5. Leslie Richardson & John B. Loomis & Patricia A. Champ, 2013. "Valuing Morbidity from Wildfire Smoke Exposure: A Comparison of Revealed and Stated Preference Techniques," Land Economics, University of Wisconsin Press, vol. 89(1), pages 76-100.
    6. Bukenya, James O., 2006. "Household Perceptions Of The Quality Of Drinking Water In Uganda," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35355, Southern Agricultural Economics Association.
    7. Tenwalde, Tracy & Jones, Eugene & Hitzhusen, Frederick J., 2005. "An Economic Analysis of Consumer Expenditures for Safe Drinking Water: Addressing Nitrogen Risk with an Averting Cost Approach," 2005 Annual meeting, July 24-27, Providence, RI 19431, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    9. Bruno Lanz & Allan Provins, 2014. "The demand for tap water quality: Survey evidence on water hardness and aesthetic quality," CIES Research Paper series 23-2014, Centre for International Environmental Studies, The Graduate Institute.
    10. Wei Chen & Jian Chen & Guopeng Yin, 2022. "Exploring side effects of ridesharing services in urban China: role of pollution–averting behavior," Electronic Commerce Research, Springer, vol. 22(4), pages 1007-1034, December.
    11. Ribaudo, Marc O. & Hellerstein, Daniel, 1992. "Estimating Water Quality Benefits: Theoretical and Methodological Issues," Technical Bulletins 157031, United States Department of Agriculture, Economic Research Service.
    12. Bruno S. Frey & Simon Luechinger, 2005. "Measuring terrorism," Chapters, in: Alain Marciano & Jean-Michel Josselin (ed.), Law and the State, chapter 6, Edward Elgar Publishing.
    13. Cropper, Maureen L., 2000. "Has Economic Research Answered the Needs of Environmental Policy?," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 328-350, May.
    14. Dr Clevo I. Wilson, 1999. "A WTP Model Showing the Relationships Between Three Approaches For Pollution," Discussion Papers Series 268, School of Economics, University of Queensland, Australia.
    15. Pierre Thomas Léger, 2001. "Willingness to Pay for Improvements in Air Quality," Cahiers de recherche 01-02, HEC Montréal, Institut d'économie appliquée.
    16. Ebert, Udo, 2007. "Revealed preference and household production," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 276-289, March.
    17. Zheng Liu & Angelos Pagoulatos & Wuyang Hu & Jack Schieffer, 2014. "Valuing the Benefit of Reducing Adverse Effects from Polluting Heating Fuels," Social Science Quarterly, Southwestern Social Science Association, vol. 95(3), pages 868-881, September.
    18. Piper, Steven & Lee, Linda K., 1989. "Estimating the Offsite Household Damages From Wind Erosion in the Western United States," Staff Reports 278231, United States Department of Agriculture, Economic Research Service.
    19. Martini, Chiara & Tiezzi, Silvia, 2014. "Is the environment a luxury? An empirical investigation using revealed preferences and household production," Resource and Energy Economics, Elsevier, vol. 37(C), pages 147-167.
    20. Robert E. Kohn, 1992. "Pigouvian Taxation, Risk Aversion, and Avoidance," Public Finance Review, , vol. 20(1), pages 103-113, January.
    21. Mi-Jung Um & Seung-Jun Kwak & Tai-Yoo Kim, 2002. "Estimating Willingness to Pay for Improved Drinking Water Quality Using Averting Behavior Method with Perception Measure," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 21(3), pages 285-300, March.

    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:kap:enreec:v:20:y:2001:i:2:p:91-102. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.