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Life-Cycle and Cohort Effects in the Valuation of Air Quality: Evidence from Subjective Well-being Data

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  • Tobias Menz
  • Heinz Welsch

Abstract

By using data on self-rated life satisfaction as an empirical indicator of well-being, this paper estimates the valuation of two major air pollutants differentiated by people’s age category (stage in the life cycle) and birth cohort. Life satisfaction regressions involving about 59,000 individuals in 10 European countries, 1990–1997, imply that, consistent with epidemiological evidence, both life-cycle and cohort effects exist in the valuation of air quality. The age and cohort dependence of the sensitivity to air pollution translates into considerable differences in the valuation of clean air.

Suggested Citation

  • Tobias Menz & Heinz Welsch, 2012. "Life-Cycle and Cohort Effects in the Valuation of Air Quality: Evidence from Subjective Well-being Data," Land Economics, University of Wisconsin Press, vol. 88(2), pages 300-325.
  • Handle: RePEc:uwp:landec:v:88:y:2012:ii:1:p:300-325
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    Cited by:

    1. Ferreira, Susana & Akay, Alpaslan & Brereton, Finbarr & Cuñado, Juncal & Martinsson, Peter & Moro, Mirko & Ningal, Tine F., 2013. "Life satisfaction and air quality in Europe," Ecological Economics, Elsevier, vol. 88(C), pages 1-10.
    2. Zhang, Xin & Zhang, Xiaobo & Chen, Xi, 2017. "Happiness in the air: How does a dirty sky affect mental health and subjective well-being?," Journal of Environmental Economics and Management, Elsevier, vol. 85(C), pages 81-94.
    3. Arik Levinson, "undated". "Happiness and Air Pollution," Working Papers gueconwpa~20-23-10, Georgetown University, Department of Economics.
    4. Arik Levinson, 2020. "Happiness and air pollution," Chapters, in: David Maddison & Katrin Rehdanz & Heinz Welsch (ed.), Handbook on Wellbeing, Happiness and the Environment, chapter 9, pages 164-182, Edward Elgar Publishing.
    5. Bertram, Christine & Rehdanz, Katrin, 2015. "The role of urban green space for human well-being," Ecological Economics, Elsevier, vol. 120(C), pages 139-152.
    6. Powdthavee, Nattavudh & Oswald, Andrew J., 2020. "Is there a link between air pollution and impaired memory? Evidence on 34,000 english citizens," Ecological Economics, Elsevier, vol. 169(C).
    7. Welsch, Heinz & Ferreira, Susana, 2014. "Environment, Well-Being, and Experienced Preference," International Review of Environmental and Resource Economics, now publishers, vol. 7(3-4), pages 205-239, December.
    8. Christine Bertram & Jan Goebel & Christian Krekel & Katrin Rehdanz, 2022. "Urban Land Use Fragmentation and Human Well-Being," Land Economics, University of Wisconsin Press, vol. 98(2), pages 399-420.
    9. Ambrey, Christopher L. & Chan, Andrew Yiu-Chung & Fleming, Christopher M., 2013. "Estimating the cost of air pollution in South East Queensland: An application of the life satisfaction non-market valuation approach," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152133, Australian Agricultural and Resource Economics Society.
    10. Xingmin Shi & Xueping Li & Xieyang Chen & Luping Zhang, 2022. "Objective air quality index versus subjective perception: which has a greater impact on life satisfaction?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6860-6877, May.

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    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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