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Cited by 505Economic and Environmental ValuationEnvironmental and Air Quality ManagementAir Quality and Health Impacts

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Valuing Air Quality Using the Life Satisfaction Approach

Luechinger, Simon·2009·The Economic Journal
DOI 10.1111/j.1468-0297.2008.02241.x
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Abstract

I use the life satisfaction approach to value air quality, combining individual‐level panel and high‐resolution SO2 data. To avoid simultaneity problems, I construct a novel instrument exploiting the natural experiment created by the mandated scrubber installation at power plants, with wind directions dividing counties into treatment and control groups. I find a negative effect of pollution on well‐being that is larger for instrumental variable than conventional estimates, robust to controls for local unemployment, particulate pollution, reunification effects and rural/urban trends, and larger for environmentalists and predicted risk groups. To calculate total willingness‐to‐pay, the estimates are supplemented by hedonic housing regressions.

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Metadata

Authors
Luechinger, S.
Affiliations
University of Zurich (CH)
Corresponding author
Luechinger, Simon
ORCID
Luechinger, Simon
Venue
The Economic Journal
Publisher
Oxford University Press (OUP)
Published
2009-02-18
Volume
119
Issue
536
Pages
482-515
ISSN
  • 0013-0133 (ISSN-L)
  • 1468-0297
DOI
10.1111/j.1468-0297.2008.02241.x
OpenAlex
W1983134767
Cited by
505
References
0
Citations by year
2026: 5 · 2025: 20 · 2024: 17 · 2023: 31 · 2022: 28 · 2021: 44 · 2020: 28 · 2019: 32 · 2018: 27 · 2017: 31 · 2016: 39 · 2015: 29 · 2014: 39 · 2013: 39 · 2012: 27
FWCI
66.70
Type
journal article
Language
en
Open access
closed
Licence
doi.wiley.com/10.1002/tdm_license_1.1 (tdm, 2386 d)
Locations
  • The Economic Journal (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • Zurich Open Repository and Archive (University of Zurich) (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Environmental Valuation
  • Physical Sciences › Environmental Science › Environmental Engineering › Environmental and Air Quality Management
  • Physical Sciences › Environmental Science › Health, Toxicology and Mutagenesis › Air Quality and Health Impacts
Keywords
air quality valuation, sulfur dioxide, life satisfaction, willingness to pay, wind direction, instrumental variables, hedonic housing prices, environmental valuation

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