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

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

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    File URL: http://purl.umn.edu/152133
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    Paper provided by Australian Agricultural and Resource Economics Society in its series 2013 Conference (57th), February 5-8, 2013, Sydney, Australia with number 152133.

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    Date of creation: Feb 2013
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    Handle: RePEc:ags:aare13:152133
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