Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145162
Authors: 
Zhang, Xin
Zhang, Xiaobo
Chen, Xi
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 10028
Abstract: 
This paper estimates the monetary value of cutting PM2.5, a dominant source of air pollution in China. By matching hedonic happiness in a nationally representative survey with daily air quality data according to exact dates and locations of interviews in China, we are able to estimate the relationship between local concentration of particulate matter and individual happiness. By holding happiness constant, we calculate the tradeoff between the reduction in particulate matter and income, essentially a happiness-based measure of willingness-to-pay for mitigating air pollution. We find that people on average are willing to pay ¥539 ($88, or 3.8% of annual household per capita income) for a 1 μg/m3 reduction in PM2.5 per year per person.
Subjects: 
willingness to pay
hedonic happiness
air pollution
China
JEL: 
Q51
Q53
I31
Document Type: 
Working Paper

Files in This Item:
File
Size
423.88 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.