IDEAS home Printed from https://ideas.repec.org/p/aue/wpaper/1135.html
   My bibliography  Save this paper

Air Quality Degradation: Can Economics Help in Measuring its Welfare Effects? A Review of Economic Valuation Studies

Author

Listed:
  • Phoebe Koundouri
  • Eva Kougea

Abstract

Air quality affects human�s well being in various ways. Air providing the most important life-support function sustains human health and enables the existence of all ecosystems. Although clean air is considered to be a basic requirement for human health and well-being, economic development and population growth has resulted in a considerable deterioration of air quality. Human activities like the intensification of agriculture, industrialization, increasing energy use, the burning of fossil fuels and the increase in transportation have resulted to a rising cocktail of poisonous pollutants which impose many adverse effects on environment as a whole, our human health and life expectancy, ecosystems services, biodiversity, agricultural crops and building structures.

Suggested Citation

  • Phoebe Koundouri & Eva Kougea, 2011. "Air Quality Degradation: Can Economics Help in Measuring its Welfare Effects? A Review of Economic Valuation Studies," DEOS Working Papers 1135, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:1135
    as

    Download full text from publisher

    File URL: http://wpa.deos.aueb.gr/docs/2011.InTech.pdf
    File Function: First version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Phoebe Koundouri & Katia Karousakis & Dionysis Assimacopoulos & Paul Jeffrey & Manfred A. Lange (ed.), 2006. "Water Management in Arid and Semi-Arid Regions," Books, Edward Elgar Publishing, number 3863.
    2. Bozicevic Vrhovcak, Maja & Tomsic, Zeljko & Debrecin, Nenad, 2005. "External costs of electricity production: case study Croatia," Energy Policy, Elsevier, vol. 33(11), pages 1385-1395, July.
    3. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2012. "Using a choice experiment to estimate the benefits of a reduction of externalities in urban areas with special focus on electrosmog," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 387-397, January.
    4. Dominika Parry Dziegielewska & Robert Mendelsohn, 2005. "Valuing Air Quality in Poland," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(2), pages 131-163, February.
    5. Kyriaki Remoundou & Phoebe Koundouri, 2009. "Environmental Effects on Public Health: An Economic Perspective," IJERPH, MDPI, vol. 6(8), pages 1-19, July.
    6. Bryan Hubbell, 2006. "Implementing QALYs in the Analysis of Air Pollution Regulations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(3), pages 365-384, July.
    7. Delucchi, Mark & Murphy, James & McCubbin, Donald, 2002. "The Health and Visibility Cost of Air Pollution: A Comparison of Estimation Methods," Institute of Transportation Studies, Working Paper Series qt03s2x9xb, Institute of Transportation Studies, UC Davis.
    8. Won Kim, Chong & Phipps, Tim T. & Anselin, Luc, 2003. "Measuring the benefits of air quality improvement: a spatial hedonic approach," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 24-39, January.
    9. Anna Alberini & Alan Krupnick, 2000. "Cost-of-Illness and Willingness-to-Pay Estimates of the Benefits of Improved Air Quality: Evidence from Taiwan," Land Economics, University of Wisconsin Press, vol. 76(1), pages 37-53.
    10. Ståle Navrud & Richard C. Ready (ed.), 2002. "Valuing Cultural Heritage," Books, Edward Elgar Publishing, number 1759.
    11. Karousakis, Katia & Koundouri, Phoebe, 2006. "A Typology of Economic Instruments and Methods for Efficient Water Resources Management in Arid and Semi-Arid Regions," MPRA Paper 41909, University Library of Munich, Germany.
    12. Larson, Bruce A. & Avaliani, Simon & Golub, Alexander & Rosen, Sydney & Shaposhnikov, Dmitry & Strukova, Elena & Vincent, Jeffrey R. & Wolff, Scott K., 1999. "The Economics of Air Pollution Health Risks in Russia: A Case Study of Volgograd," World Development, Elsevier, vol. 27(10), pages 1803-1819, October.
    13. Bente Halvorsen, 1996. "Ordering effects in contingent valuation surveys," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 8(4), pages 485-499, December.
    14. Fredrik Carlsson & Olof Johansson-Stenman, 2000. "Willingness to pay for improved air quality in Sweden," Applied Economics, Taylor & Francis Journals, vol. 32(6), pages 661-669.
    15. Macmillan, Douglas & Hanley, Nick & Buckland, Steve, 1996. "A Contingent Valuation Study of Uncertain Environmental Gains," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(5), pages 519-533, November.
    16. María Vázquez Rodríguez & Carmelo León, 2004. "Altruism and the Economic Values of Environmental and Social Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(2), pages 233-249, June.
    17. Smith, V Kerry & Huang, Ju-Chin, 1995. "Can Markets Value Air Quality? A Meta-analysis of Hedonic Property Value Models," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 209-227, February.
    18. Krupnick, Alan & Alberini, Anna & Cropper, Maureen & Simon, Nathalie & O'Brien, Bernie & Goeree, Ron & Heintzelman, Martin, 2002. "Age, Health and the Willingness to Pay for Mortality Risk Reductions: A Contingent Valuation Survey of Ontario Residents," Journal of Risk and Uncertainty, Springer, vol. 24(2), pages 161-186, March.
    19. Lauraine G. Chestnut & Bart D. Ostro & Nuntavarn Vichit-Vadakan, 1997. "Transferability of Air Pollution Control Health Benefits Estimates from the United States to Developing Countries: Evidence from the Bangkok Study," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1630-1635.
    20. Wagstaff, Adam, 1991. "QALYs and the equity-efficiency trade-off," Journal of Health Economics, Elsevier, vol. 10(1), pages 21-41, May.
    21. James Hammitt & Ying Zhou, 2006. "The Economic Value of Air-Pollution-Related Health Risks in China: A Contingent Valuation Study," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 33(3), pages 399-423, March.
    22. Pearce, David, 1996. "Economic valuation and health damage from air pollution in the developing world," Energy Policy, Elsevier, vol. 24(7), pages 627-630, July.
    23. Mohammed Belhaj, 2003. "Estimating the benefits of clean air contingent valuation and hedonic price methods," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 3(1), pages 30-46.
    24. Usha Gupta, 2006. "Valuation of Urban Air Pollution: A Case Study of Kanpur City in India," Working Papers id:668, eSocialSciences.
    25. Ståle Navrud, 2001. "Valuing Health Impacts from Air Pollution in Europe," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(4), pages 305-329, December.
    26. Francois Bonnieux & Pierre Rainelli, 1999. "Contingent valuation methodology and the EU institutional framework," Post-Print hal-01594003, HAL.
    27. Welsch, Heinz, 2006. "Environment and happiness: Valuation of air pollution using life satisfaction data," Ecological Economics, Elsevier, vol. 58(4), pages 801-813, July.
    28. Alberini, Anna & Cropper, Maureen & Fu, Tsu-Tan & Krupnick, Alan & Liu, Jin-Tan & Shaw, Daigee & Harrington, Winston, 1997. "Valuing Health Effects of Air Pollution in Developing Countries: The Case of Taiwan," Journal of Environmental Economics and Management, Elsevier, vol. 34(2), pages 107-126, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nguyen, Thanh Cong & Le, Hoa Thu & Nguyen, Hang Dieu & Le, Thanh Ha & Nguyen, Hong Quang, 2021. "Estimating economic benefits associated with air quality improvements in Hanoi City: An application of a choice experiment," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 420-433.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. A. Myrick Freeman III, 2000. "The Valuation of Environmental Health Damages in Developing Countries: Some Observations," EEPSEA Special and Technical Paper sp200011t1, Economy and Environment Program for Southeast Asia (EEPSEA), revised Nov 2000.
    2. Gupta, Monika, 2016. "Willingness to pay for carbon tax: A study of Indian road passenger transport," Transport Policy, Elsevier, vol. 45(C), pages 46-54.
    3. Sengupta, Ramprasad & Mandal, Subrata, 2005. "Health damage cost of automotive air pollution: Cost benefit analysis of fuel quality upgradation for Indian cities," Working Papers 05/37, National Institute of Public Finance and Policy.
    4. Kyriaki Remoundou & Phoebe Koundouri, 2009. "Environmental Effects on Public Health: An Economic Perspective," IJERPH, MDPI, vol. 6(8), pages 1-19, July.
    5. M. Murty & Surender Kumar & Kishore Dhavala, 2007. "Measuring environmental efficiency of industry: a case study of thermal power generation in India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 31-50, September.
    6. Natina Yaduma & Mika Kortelainen & Ada Wossink, 2013. "Estimating Mortality and Economic Costs of Particulate Air Pollution in Developing Countries: The Case of Nigeria," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 361-387, March.
    7. María Xosé Vázquez & Jorge E. Araña & Carmelo J. León, 2006. "Economic evaluation of health effects with preference imprecision," Health Economics, John Wiley & Sons, Ltd., vol. 15(4), pages 403-417, April.
    8. Sonia Akter & Jeff Bennett, 2011. "Household perceptions of climate change and preferences for mitigation action: the case of the Carbon Pollution Reduction Scheme in Australia," Climatic Change, Springer, vol. 109(3), pages 417-436, December.
    9. Courard-Hauri David & Lauer Stephen A., 2012. "Taking "All Men Are Created Equal" Seriously: Toward a Metric for the Intergroup Comparison of Utility Functions Through Life Values," Journal of Benefit-Cost Analysis, De Gruyter, vol. 3(3), pages 1-30, August.
    10. José-María Montero & Coro Chasco & Beatriz Larraz, 2010. "Building an environmental quality index for a big city: a spatial interpolation approach combined with a distance indicator," Journal of Geographical Systems, Springer, vol. 12(4), pages 435-459, December.
    11. Eleftherios Giovanis, 2019. "Worthy to lose some money for better air quality: applications of Bayesian networks on the causal effect of income and air pollution on life satisfaction in Switzerland," Empirical Economics, Springer, vol. 57(5), pages 1579-1611, November.
    12. Thijs Dekker & Roy Brouwer & Marjan Hofkes & Klaus Moeltner, 2011. "The Effect of Risk Context on the Value of a Statistical Life: a Bayesian Meta-model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(4), pages 597-624, August.
    13. Anne ROZAN & Marc WILLINGER, 1999. "Does the knowledge of the origin of the health damage matter for WTP estimates?," Working Papers of BETA 9904, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    14. Brian Chi-ang Lin & Siqi Zheng & Eleftherios Giovanis & Oznur Ozdamar, 2016. "Structural Equation Modelling And The Causal Effect Of Permanent Income On Life Satisfaction: The Case Of Air Pollution Valuation In Switzerland," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 430-459, July.
    15. Levinson, Arik, 2012. "Valuing public goods using happiness data: The case of air quality," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 869-880.
    16. Tzipi Eshet & Mira Baron & Mordechai Shechter, 2007. "Exploring Benefit Transfer: Disamenities of Waste Transfer Stations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(3), pages 521-547, July.
    17. Jones, Nikoleta & Sophoulis, Costas M. & Malesios, Chrisovaladis, 2008. "Economic valuation of coastal water quality and protest responses: A case study in Mitilini, Greece," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2478-2491, December.
    18. Kharitonov, Vitaly & Walmsley, Terrie Louise, 2004. "Impact of Russia’s WTO Accession on the Structure of the Russian Economy," Conference papers 331285, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Montero, José María & Larraz, Beatriz & Chasco, Coro, 2008. "Building an Environmental Quality Index for a big city: a spatial interpolation approach with DP2," MPRA Paper 10736, University Library of Munich, Germany.
    20. Kevin Boyle & Sapna Kaul & Ali Hashemi & Xiaoshu Li, 2015. "Applicability of benefit transfers for evaluation of homeland security counterterrorism measures," Chapters, in: Carol Mansfield & V. K. Smith (ed.), Benefit–Cost Analyses for Security Policies, chapter 10, pages 225-253, Edward Elgar Publishing.

    More about this item

    Keywords

    Air quality; degradation; welfare effects; economic valuation;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • D6 - Microeconomics - - Welfare Economics
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aue:wpaper:1135. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ekaterini Glynou (email available below). General contact details of provider: https://edirc.repec.org/data/diauegr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.