The demand for air quality: Evidence from the housing market in Bogotá, Colombia

Fernando Carriazo, John Alexander Gomez-Mahecha

Resultado de la investigación: Contribución a una revistaArtículorevisión exhaustiva

9 Citas (Scopus)

Resumen

Identifying a demand function for air quality is a key input to calculate welfare measurements of pollution abatement policies. We defined intra-urban housing submarkets to apply a Second Stage hedonic pricing model that allowed us to identify an inverse demand function for PM10 reductions in Bogotá. The monthly benefits of compliance with the U.S. Environmental Protection Agency standard (50 μg/m3-annual average), and the far more stringent World Health Organization standard (20 μg/m3-annual average) are valued at US$12.16 and US$189.64 per household, respectively. These values, in turn, represent about 1.35 per cent and 21.04 per cent of the average household income. The hedonic model applied hereby shows that intra-urban housing submarkets are suitable for the identification of a demand function to be used by policy makers interested in evaluating non-marginal benefits (costs) from air quality improvements (deterioration).

Idioma originalInglés estadounidense
Páginas (desde-hasta)121-138
Número de páginas18
PublicaciónEnvironment and Development Economics
Volumen23
N.º2
DOI
EstadoPublicada - abr 1 2018

All Science Journal Classification (ASJC) codes

  • Desarrollo
  • Ciencias ambientales (todo)
  • Economía y econometría

Huella Profundice en los temas de investigación de 'The demand for air quality: Evidence from the housing market in Bogotá, Colombia'. En conjunto forman una huella única.

Citar esto