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Welfare Impacts of Air Quality Changes in Malaysia: The Hedonic Pricing Approach

Author

Listed:
  • Othman, Jamal

    (Pusat Pengajian Ekonomi Universiti Kebangsaan Malaysia 43600 UKM Bangi, Selangor D.E Malaysia)

  • Othman, Redzuan

    (Pusat Pengajian Ekonomi Universiti Kebangsaan Malaysia 43600 UKM Bangi, Selangor D.E Malaysia)

  • Md Noor, Nor Ghani

    (Pusat Pengajian Ekonomi Universiti Kebangsaan Malaysia 43600 UKM Bangi, Selangor D.E Malaysia)

Abstract

This study employs the Hedonic Pricing Model(HPM) to assess the welfare impacts of air quality changes in Malaysia. Result from second stage HPM indicate that households on average derive benefits (welfare gain) of some RM19 for every unit of improvement in air quality index (API) in relation to the baseline API level. This finding provides an insight of the magnitude of wefare gain or loss due to air quality changes.

Suggested Citation

  • Othman, Jamal & Othman, Redzuan & Md Noor, Nor Ghani, 2006. "Welfare Impacts of Air Quality Changes in Malaysia: The Hedonic Pricing Approach," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 40, pages 47-58.
    • Handle: RePEc:ukm:jlekon:v:40:y:2006:i::p:47-58
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