Header

UZH-Logo

Maintenance Infos

Valuing air quality using the life satisfaction approach


Luechinger, Simon (2009). Valuing air quality using the life satisfaction approach. Economic Journal, 119(536):482-515.

Abstract

I use the life satisfaction approach to value air quality, combining individual-level panel and high-resolution SO2 data. To avoid simultaneity problems, I construct a novel instrument exploiting the natural experiment created by the mandated scrubber installation at power plants, with wind directions dividing counties into treatment and control groups. I find a negative effect of pollution on well-being that is larger for instrumental variable than conventional estimates, robust to controls for local unemployment, particulate pollution, reunification effects and rural/urban trends, and larger for environmentalists and predicted risk groups. To calculate total willingness-to-pay, the estimates are supplemented by hedonic housing regressions.

Abstract

I use the life satisfaction approach to value air quality, combining individual-level panel and high-resolution SO2 data. To avoid simultaneity problems, I construct a novel instrument exploiting the natural experiment created by the mandated scrubber installation at power plants, with wind directions dividing counties into treatment and control groups. I find a negative effect of pollution on well-being that is larger for instrumental variable than conventional estimates, robust to controls for local unemployment, particulate pollution, reunification effects and rural/urban trends, and larger for environmentalists and predicted risk groups. To calculate total willingness-to-pay, the estimates are supplemented by hedonic housing regressions.

Statistics

Citations

121 citations in Web of Science®
133 citations in Scopus®
Google Scholar™

Altmetrics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:2009
Deposited On:22 Feb 2010 09:26
Last Modified:05 Apr 2016 13:59
Publisher:Wiley-Blackwell
ISSN:0013-0133
Publisher DOI:https://doi.org/10.1111/j.1468-0297.2008.02241.x

Download

Full text not available from this repository.
View at publisher