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Willingness to Pay for Improvements in Air Quality

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Central to the discussion of air quality degradation is its effect on health and the costs that it may impose on the health care system and the individuals whose health has been affected. Estimating the monetary benefits associated with improved air quality is problematic, as air (and its quality) is a public goods. By employing daily environmental data from Montreal and the Quebec Health Survey, a component of individuals’ willingness to pay for reductions in ozone is estimated building on the work of Gerking and Stanley (1986). The results suggest a significant relationship between ozone levels, health status and medical care consumption. The results also suggest that the monetary benefits from reducing ozone levels are greater than previously estimated.

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  • Pierre Thomas Léger, 2001. "Willingness to Pay for Improvements in Air Quality," Cahiers de recherche 01-02, HEC Montréal, Institut d'économie appliquée.
  • Handle: RePEc:iea:carech:0102
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    File URL: http://www.hec.ca/iea/cahiers/2001/iea0102_ptl.pdf
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    1. Gerking, Shelby & Stanley, Linda R, 1986. "An Economic Analysis of Air Pollution and Health: The Case of St. Louis," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 115-121, February.
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    6. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    7. Mordechai Shechter, 1991. "A comparative study of environmental amenity valuations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(2), pages 129-155, June.
    8. Kohlhase, Janet E., 1991. "The impact of toxic waste sites on housing values," Journal of Urban Economics, Elsevier, vol. 30(1), pages 1-26, July.
    9. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    10. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    11. Dickie, Mark & Gerking, Shelby, 1991. "Willingness to Pay for ozone control: Inferences from the demand for medical care," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 1-16, July.
    12. Courant, Paul N. & Porter, Richard C., 1981. "Averting expenditure and the cost of pollution," Journal of Environmental Economics and Management, Elsevier, vol. 8(4), pages 321-329, December.
    13. Hey, John D. & Patel, Mahesh S., 1983. "Prevention and cure? : Or: Is an ounce of prevention worth a pound of cure?," Journal of Health Economics, Elsevier, vol. 2(2), pages 119-138, August.
    14. Portney, Paul R. & Mullahy, John, 1986. "Urban air quality and acute respiratory illness," Journal of Urban Economics, Elsevier, vol. 20(1), pages 21-38, July.
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    Cited by:

    1. Giovanis, Eleftherios & Ozdamar, Oznur, 2014. "The effects of Air Pollution on Health Status in Great Britain," MPRA Paper 59988, University Library of Munich, Germany.

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