Valuation of Air Quality in Chile: The Life Satisfaction Approach

Mendoza, Yenniel; Loyola, Roger; Aguilar, A; Escalante, Roberto

doi:10.1007/s11205-019-02103-1

Cited by 21 publications

(17 citation statements)

References 49 publications

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“…Although the authors use land values as dependent variables, their MWTP for PM 2.5 reduction ranges from US$9.14 to US$13.92 per m 2 – values rather close to the mean of US$12.31 in column 4 of table 3. Similarly, for Chile, only one study has analyzed PM 2.5 , but it employs the life satisfaction approach (Mendoza et al ., 2019) in only 70 communes. According to Mendoza et al .…”

Section: Resultsmentioning

confidence: 99%

“…(2011) examine air pollution in 44 communes, while Mendoza et al . (2019), using the life satisfaction approach to compute people's willingness to pay for reduced air pollution in Chile, focus on 70 municipalities.…”

Section: Introductionmentioning

confidence: 99%

“…Based on this estimate, the monthly marginal willingness to pay for a 1 μg/m 3 decrease in PM 2.5 averages US$12.31. This monetary assessment of air pollution is akin to the values found in México City (Chakraborti et al ., 2019) and in a recent study for Chile (Mendoza et al ., 2019).…”

Section: Introductionmentioning

confidence: 99%

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How does air pollution affect housing rental prices in Chile? An economic assessment of PM_2.5 concentration across Chilean communes

Gómez

Iturra

2021

Envir. Dev. Econ.

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This paper addresses a serious environmental concern in Chile: PM2.5 concentration, a health threat especially affecting the population living in the central and southern communes of Chile. Using housing data for 312 spatial units, along with interpolation techniques to predict air pollution for communes with missing information, we find that, on average, 1 μg/m3 increase in PM2.5 produces a decrease of 4.1 per cent in housing rental prices. These estimates also show an important upward bias in the estimated coefficient when the endogeneity of air pollution is not addressed. An average Chilean household would be willing to pay US$12.31 per month for a one-unit reduction in PM2.5 concentration. Similar monetary values have been found in previous studies for both México and Chile. As with PM2.5 concentration, the average marginal willingness to pay exhibits marked differences across communes. From these results, the study addresses some policy implications and proposes avenues for future research.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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How does air pollution affect housing rental prices in Chile? An economic assessment of PM_2.5 concentration across Chilean communes

Gómez

Iturra

2021

Envir. Dev. Econ.

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“…A large body of literature has developed investigating the influence of environmental pollution on individuals' happiness. Unsurprisingly, the correlation between them is found to be negative in both developed (Ambrey et al, 2014;Orru et al, 2016) and developing countries (Mendoza et al, 2019;Zhang et al, 2017a). The mechanisms behind it appear to be twofold: pollution not only negatively affects human physical health by increasing risk of diseases and stopping outdoor physical activity (Laffan, 2018;Landrigan et al, 2018;MacKerron and Mourato, 2013) to lower happiness, but also results in suboptimal psychological conditions by increasing environmental stress or perceived risk (Marques and Lima, 2011;Li et al, 2014; to exert its influence.…”

Section: Introductionmentioning

confidence: 99%

Impacts of pollution abatement projects on happiness: An exploratory study in China

Jin

Zeng

Cao

et al. 2020

Journal of Cleaner Production

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Pollution has been a global concern in recent decades, promoting related actions in an increasing number of areas. While pollution can lead to unhappiness, will pollution abatement simply increase people's happiness? We analyze relevant happiness data collected before and after China's South-to-North Water Diversion Eastern Route Pollution Control Project to test this idea. The empirical results indicate that the pollution abatement project may not enhance happiness in its duration. Some residents may temporarily sacrifice something (such as employment or income), which offsets the positive effect of environmental improvement on their happiness. In subgroup analyses, rural people are found to benefit more from environmental improvement and suffer less in happiness compared with the urban, and so are lowincome people compared with the high-income ones. The findings offer new insights into the costs of pollution in terms of happiness and highlight the need to abate pollution meticulously.

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“…Standard economic methods to value these interventions, such as stated and revealed preference methods, are expensive and have several problems that limit its use [1][2][3]. An alternative method with growing applications in health, environmental, hazard, and disaster research [3][4][5][6][7][8][9][10][11][12] is the Life Satisfaction Approach (LSA), which is based on Hicksian compensation to identify the variation of income that would be necessary to offset the utility change produced by an intervention [1].…”

Section: Introductionmentioning

confidence: 99%

Valuing disaster risk reduction neighborhood interventions in informal settlements of Latin American and the Caribbean

et al. 2020

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This study assesses the dollar benefit of a neighborhood approach intervention on disaster risk reduction in small-sized, densely populated, and hazard-prone informal settlements across Latin American and Caribbean countries. We use a life satisfaction approach that assigns a dollar value to gains in wellbeing associated with the neighborhood approach intervention. Our primary data was a survey to a sample of 349 beneficiaries from small towns in Haiti, Guatemala, and Jamaica, and in major cities’ surrounded areas of Peru, Colombia, and Honduras. Out of 14 interventions, we found that community empowerment, physical works in public spaces and urban gardens/food approaches produced a gain of USD1,038 to USD1,241 to individual beneficiaries. Our study suggests a large benefit associated with the neighborhood approach intervention. It also shows that the life satisfaction approach is a promising method for the valuation of non-market and public goods, especially for countries where data on hazards and risks is not available to help monetize risk reductions.

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Valuation of Air Quality in Chile: The Life Satisfaction Approach

Cited by 21 publications

References 49 publications

How does air pollution affect housing rental prices in Chile? An economic assessment of PM_2.5 concentration across Chilean communes

How does air pollution affect housing rental prices in Chile? An economic assessment of PM_2.5 concentration across Chilean communes

Impacts of pollution abatement projects on happiness: An exploratory study in China

Valuing disaster risk reduction neighborhood interventions in informal settlements of Latin American and the Caribbean

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Valuation of Air Quality in Chile: The Life Satisfaction Approach

Cited by 21 publications

References 49 publications

How does air pollution affect housing rental prices in Chile? An economic assessment of PM2.5 concentration across Chilean communes

How does air pollution affect housing rental prices in Chile? An economic assessment of PM2.5 concentration across Chilean communes

Impacts of pollution abatement projects on happiness: An exploratory study in China

Valuing disaster risk reduction neighborhood interventions in informal settlements of Latin American and the Caribbean

Contact Info

Product

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How does air pollution affect housing rental prices in Chile? An economic assessment of PM_2.5 concentration across Chilean communes

How does air pollution affect housing rental prices in Chile? An economic assessment of PM_2.5 concentration across Chilean communes