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Estimating the Demand for Air Quality in Four U.S. Cities

Author

Listed:
  • Katherine Kiel

    (Department of Economics, College of the Holy Cross)

  • Jeffrey Zabel

    (Department of Economics, Tufts University)

Abstract

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.

Suggested Citation

  • Katherine Kiel & Jeffrey Zabel, 2000. "Estimating the Demand for Air Quality in Four U.S. Cities," Working Papers 0009, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:0009
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    JEL classification:

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

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