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Cost-of-Illness and Willingness-to-Pay Estimates of the Benefits of Improved Air Quality: Evidence from Taiwan

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  • Anna Alberini
  • Alan Krupnick

Abstract

We compare cost-of-illness (COI) and willingness-to-pay (WTP) estimates of the damages from minor respiratory symptoms associated with air pollution, using data from a study in Taiwan in 1991-92. A contingent valuation survey was conducted to estimate WTP to avoid minor respiratory illnesses. Health diaries were analyzed to predict the likelihood and cost of seeking relief from symptoms and of missing work. As predicted by economic theory, WTP is greater than the COI estimates, exceeding the latter by 1.61 to 2.26 times, depending on pollution levels. These ratios are similar to those for the United States, despite the differences between the two countries

Suggested Citation

  • Anna Alberini & Alan Krupnick, 2000. "Cost-of-Illness and Willingness-to-Pay Estimates of the Benefits of Improved Air Quality: Evidence from Taiwan," Land Economics, University of Wisconsin Press, vol. 76(1), pages 37-53.
  • Handle: RePEc:uwp:landec:v:76:y:2000:i:1:p:37-53
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    Citations

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    Cited by:

    1. Mansfield, Carol & Reed Johnson, F. & Van Houtven, George, 2006. "The missing piece: Valuing averting behavior for children's ozone exposures," Resource and Energy Economics, Elsevier, vol. 28(3), pages 215-228, August.
    2. Eva Kougea & Phoebe Koundouri, "undated". "Air Quality Degradation: Can economics help in measuring its welfare effects? A Review of Economic Valuation Studies," DEOS Working Papers 1129, Athens University of Economics and Business.
    3. Clevo Wilson, 2003. "Empirical Evidence Showing The Relationships Between Three Approaches for Pollution Control," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(1), pages 97-101, January.
    4. Usha Gupta, 2006. "Valuation of Urban Air Pollution: A Case Study of Kanpur City in India," Working Papers id:668, eSocialSciences.
    5. Ozdamar, Oznur & Giovanis, Eleftherios, 2014. "Valuing the Effects of Air and Noise Pollution on Health Status in Turkey," MPRA Paper 59992, University Library of Munich, Germany.
    6. Brajer, Victor & Mead, Robert W. & Xiao, Feng, 2006. "Valuing the health impacts of air pollution in Hong Kong," Journal of Asian Economics, Elsevier, vol. 17(1), pages 85-102, February.
    7. Benkhalifa, Abdelaziz, 2010. "The value of mortality risk reductions in the Tunisian building and manufacturing industries," MPRA Paper 63617, University Library of Munich, Germany.
    8. Ebere Akobundu & Jing Ju & Lisa Blatt & C. Mullins, 2006. "Cost-of-Illness Studies," PharmacoEconomics, Springer, vol. 24(9), pages 869-890, September.
    9. Evans, William N. & Garthwaite, Craig & Wei, Heng, 2008. "The impact of early discharge laws on the health of newborns," Journal of Health Economics, Elsevier, vol. 27(4), pages 843-870, July.
    10. Easter, K. William & Konishi, Yoshifumi, 2006. "Estimating Economic Health Costs of Not Controlling Toxic Water Pollution," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25768, International Association of Agricultural Economists.
    11. Easter, K. William & Konishi, Yoshifumi & Raggi, Meri & Viaggi, Davide, 2006. "What are the Economic Health Costs of Non-Action in Controlling Toxic Water Pollution?," Conference Papers 6656, University of Minnesota, Center for International Food and Agricultural Policy.
    12. Tanzir Chowdhury & Mohammad Imran, 2010. "Morbidity Costs of Vehicular Air Pollution: Examining Dhaka City in Bangladesh," Working Papers id:2677, eSocialSciences.
    13. Knetsch, Jack L., 2007. "Biased valuations, damage assessments, and policy choices: The choice of measure matters," Ecological Economics, Elsevier, vol. 63(4), pages 684-689, September.
    14. Richardson, Leslie A. & Champ, Patricia A. & Loomis, John B., 2012. "The hidden cost of wildfires: Economic valuation of health effects of wildfire smoke exposure in Southern California," Journal of Forest Economics, Elsevier, vol. 18(1), pages 14-35.
    15. Athukorala, Wasantha, 2012. "Health Benefits and Industrial Air Pollution: A Comparison between People’s Willingness to Accept and the Opportunity Cost of Health Risk," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 14.
    16. 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.
    17. Netalieva, Indira & Wesseler, Justus & Heijman, Wim, 2005. "Health costs caused by oil extraction air emissions and the benefits from abatement: the case of Kazakhstan," Energy Policy, Elsevier, vol. 33(9), pages 1169-1177, June.
    18. Enrico Moretti & Matthew Neidell, 2011. "Pollution, Health, and Avoidance Behavior: Evidence from the Ports of Los Angeles," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 154-175.
    19. repec:gam:jsusta:v:9:y:2017:i:11:p:2135-:d:119629 is not listed on IDEAS

    More about this item

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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