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Estimating the cost of air pollution in South East Queensland: An application of the life satisfaction non-market valuation approach

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  • Ambrey, Christopher L.
  • Chan, Andrew Yiu-Chung
  • Fleming, Christopher M.

Abstract

Making use of data from the Household, Income and Labour Dynamics in Australia (HILDA) survey coupled with air pollution data generated by The Air Pollution Model (TAPM), this paper employs the life satisfaction approach to estimate the cost of air pollution from human activities in South East Queensland. This paper offers at least three improvements over much of the existing literature: (1) within- (as opposed to cross-) country variations in air pollution are considered; (2) very high resolution air pollution data is employed; and (3) weather variables are included as controls within the life satisfaction function. A strong negative relationship is found between ambient concentrations of PM10 and life satisfaction, yielding a substantial willingness-to-pay for pollution reduction.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:aare13:152133
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    File URL: http://ageconsearch.umn.edu/record/152133/files/CP%20Ambrey%20Fleming.pdf
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    References listed on IDEAS

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    Keywords

    Consumer/Household Economics; Environmental Economics and Policy; International Relations/Trade; Labor and Human Capital;

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