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Evaluating the short-term cost of low-level local air pollution: a life satisfaction approach

Author

Listed:
  • Christopher Barrington-Leigh

    (McGill University)

  • Fatemeh Behzadnejad

    (University of Liverpool Management School)

Abstract

To estimate the impact of air pollution on well-being, we combine a set of repeated cross-sectional surveys of individuals with high-resolution pollution and weather data. The respondents’ level of life satisfaction is modeled as a function of their socioeconomic characteristics and income as well as the weather and air pollution on the day of the survey interview. To overcome endogeneity problems, we include a set of high-resolution geographic fixed effects. Our analysis suggests that even after controlling for seasonal and local fixed effects, higher air pollution significantly reduces life satisfaction. The adverse effect of transient increases in air pollution is greater on individuals with poor health status. Estimating the average compensating differential between income and air pollution shows that the value of improving air quality by one-half standard deviation throughout the year is about 4.4 % of the average annual income of Canadians.

Suggested Citation

  • Christopher Barrington-Leigh & Fatemeh Behzadnejad, 2017. "Evaluating the short-term cost of low-level local air pollution: a life satisfaction approach," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(2), pages 269-298, April.
    • Handle: RePEc:spr:envpol:v:19:y:2017:i:2:d:10.1007_s10018-016-0152-7
    DOI: 10.1007/s10018-016-0152-7
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    Cited by:

    1. Patrick Gourley, 0. "What are the Long-Term Effects of Prenatal Air Pollution Exposure? Evidence from the BHPS," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 0, pages 1-33.
    2. Xingmin Shi & Xueping Li & Xieyang Chen & Luping Zhang, 2022. "Objective air quality index versus subjective perception: which has a greater impact on life satisfaction?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6860-6877, May.
    3. Yenniel Mendoza & Roger Loyola & Alonso Aguilar & Roberto Escalante, 2019. "Valuation of Air Quality in Chile: The Life Satisfaction Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 367-387, August.
    4. Arik Levinson, 2020. "Happiness and air pollution," Chapters, in: David Maddison & Katrin Rehdanz & Heinz Welsch (ed.), Handbook on Wellbeing, Happiness and the Environment, chapter 9, pages 164-182, Edward Elgar Publishing.
    5. Arik Levinson, "undated". "Happiness and Air Pollution," Working Papers gueconwpa~20-23-10, Georgetown University, Department of Economics.
    6. Mona Ahmadiani & Susana Ferreira & Jacqueline Kessler, 2022. "What Makes People Happy? Evidence from International Data," Journal of Happiness Studies, Springer, vol. 23(5), pages 2083-2111, June.
    7. Patrick Gourley, 2020. "What are the Long-Term Effects of Prenatal Air Pollution Exposure? Evidence from the BHPS," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(4), pages 603-635, October.
    8. Yurong Zhang, 2017. "Taking the Time Characteristic into Account of Life Cycle Assessment: Method and Application for Buildings," Sustainability, MDPI, vol. 9(6), pages 1-14, May.
    9. Ahmadiani, Mona & Ferreira, Susana, 2019. "Environmental amenities and quality of life across the United States," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    10. C. P. Barrington-Leigh & Katja Lemermeyer, 2023. "A Public, Open, and Independently-Curated Database of Happiness Coefficients," Journal of Happiness Studies, Springer, vol. 24(4), pages 1505-1531, April.

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