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Valuing Air Quality Using Happiness Data: The Case of China.


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 the dates and counties 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 ¥258 ($42, or 1.8% of annual household per capita income) per year per person for a 1% reduction in PM2.5.

SUBMITTER: Zhang X 

PROVIDER: S-EPMC5626438 | biostudies-literature | 2017 Jul

REPOSITORIES: biostudies-literature

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Valuing Air Quality Using Happiness Data: The Case of China.

Zhang Xin X   Zhang Xiaobo X   Chen Xi X  

Ecological economics : the journal of the International Society for Ecological Economics 20170307


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 the dates and counties 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  ...[more]

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