Estimating the Demand for Air Quality in Four U.S. Cities
An analysis of the demand for air quality in four MSAs in the United States is presented using the American Housing Survey data from 1974-1991, the Decennial U.S. Censuses, and the EPA Aerometric Information Retrieval System. The marginal prices of air quality are obtained from parameter estimates for the pollution variables in a hedonic house price model, and the marginal willingness to pay (inverse demand) equations for air quality are estimated using these prices. In two of the four (inverse) demand for air quality equations, the own-good coefficient is negative and significant, while the income coefficient is positive and significant.
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