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The Value of Clean Air in China: Evidence from Beijing and Shanghai

Author

Listed:
  • Jijun Tan

    (Research Institute for Economics and Management, Southwest University of Finance and Economics, Chengdu 610074, China)

  • Jinhua Zhao

    (Department of Economics; Department of Agriculture, Food and Resource Economics; Environmental Science and Policy Program, Michigan State University, East Lansing, MI 48824, USA; Institute for Advanced Studies, Shanghai University of Finance and Economics, Shanghai 200433, China)

Abstract

We estimate the willingness to pay (WTP) of Beijing and Shanghai residents for improving the air quality of the two cities from their levels prior to the 2008 Beijing Olympic Games to the level achieved during the Olympics. The data are obtained from a contingent valuation study conducted through face-to-face interviews in June 2008 in Beijing and Shanghai prior to the Beijing Olympics, during which time there was intensive debate about Beijing¡¯s air quality. Residents in both cities are willing to pay more when they are more exposed to air pollution, when their disposable income increases, and when they have stronger beliefs that public opinion plays an important role in government policy making. Beijing residents are willing to pay more than Shanghai residents, due possibly to Beijing¡¯s poorer air quality. Overall, aggregate WTP for air quality improvement accounts for about 0.53% of the 2008 GDP in Beijing and 0.22% of the 2008 GDP in Shanghai.

Suggested Citation

  • Jijun Tan & Jinhua Zhao, 2014. "The Value of Clean Air in China: Evidence from Beijing and Shanghai," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 9(1), pages 109-137, March.
    • Handle: RePEc:fec:journl:v:9:y:2014:i:1:p:109-137
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-003-014-0007-9
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    Citations

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    Cited by:

    1. Zhuoyue Peng & Hao Wu & Maohua Ding & Min Li & Xi Huang & Rui Zheng & Lin Xu, 2021. "Ecological Compensation Standard of a Water-Receiving Area in an Inter-Basin Water Diversion Based on Ecosystem Service Value and Public Willingness: A Case Study of Beijing," Sustainability, MDPI, vol. 13(9), pages 1-15, May.
    2. Moritz A. Drupp & Zachary M. Turk & Ben Groom & Jonas Heckenhahn, 2023. "Limited substitutability, relative price changes and the uplifting of public natural capital values," Papers 2308.04400, arXiv.org, revised Mar 2024.
    3. Wang, Jianing & Lee, Chyi Lin, 2022. "The value of air quality in housing markets: A comparative study of housing sale and rental markets in China," Energy Policy, Elsevier, vol. 160(C).
    4. Zhihua Xu & Jingzhu Shan, 2018. "The effect of risk perception on willingness to pay for reductions in the health risks posed by particulate matter 2.5: A case study of Beijing, China," Energy & Environment, , vol. 29(8), pages 1319-1337, December.

    More about this item

    Keywords

    contingent valuation; Beijing Olympic Games; air quality;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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