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Valuing Air Quality Using the Life Satisfaction Approach

Bibliographic Data

ID9716070
AuthorsSimon Luechinger (0009-0004-5941-5216, University of Zurich, corresponding author)
Year2009
Volume119
Issue536
Pages482-515
Publication date2009-03-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2008.02241.x
OpenAlexW1983134767
LanguageEN
Citations received139
References cited56

I use the life satisfaction approach to value air quality, combining individual-level panel and high-resolution SO 2 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. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009

Air pollution · Air quality index · Econometrics · Economic growth · Economics · Endogeneity · Environmental economics · Geography · Instrumental variable · Life satisfaction · Meteorology · Natural resource economics · Simultaneity · Unemployment · Economic and Environmental Valuation · Housing Market and Economics · Psychological Well-being and Life Satisfaction · Psychology

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Unique citing works139
Citations per year6,95
Citation span2006 - 2026 (21)
Citation velocitycurrent
Highly citedYes
Citation typesNeutral: 139
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