TY - JOUR
T1 - Are land values related to ambient air pollution levels? Hedonic evidence from Mexico City
AU - Chakraborti, Lopamudra
AU - Heres, David
AU - Hernandez, Danae
N1 - Funding Information:
We would like to thank three anonymous referees, the Associate Editor and the Editor-in-chief of this journal; Jay Shimshack and Dan Phaneuf (Key Note Speakers at the Latin American Environmental and Energy Economics Workshop, Aguascalientes, Mexico); participants of LACEEP 10+Event (Latin American and Caribbean Environmental Economics Program), Mexico City, 5th Annual AERE Summer Conference, Breckenridge, Colorado, and 91st Western Economics Association International (WEAI) Annual Conference, Portland, Oregon.
Publisher Copyright:
Copyright © Cambridge University Press 2019.
PY - 2019/6/1
Y1 - 2019/6/1
N2 - This article investigates whether residents of Mexico City value air quality. Our results suggest that air quality improvement in PM 10 is equivalent to a marginal willingness to pay (MWTP) of US$440.31 per property for the period 2006-2013. The corresponding MWTP for PM 2.5 is US$880.63, for O 3 is US$623.78, and for SO 2 is as much as US$2091.50. These estimates are considerably larger in magnitude compared to the few other studies in similar settings. As a percentage of annual household income, these represent 2.44 per cent for PM 10 , 4.88 per cent for PM 2.5 , 3.46 per cent for O 3 and 11.59 per cent for SO 2 . Our estimates of land value-pollution elasticities for PM 10 (-0.26 and - 0.58) are within range of hedonic estimates for total suspended particulate matter in US cities around the 1970s. The corresponding elasticities range from - 0.55 to - 0.84 for PM 2.5 , from - 0.06 to - 0.49 for O 3 and from - 0.11 to - 0.34 for SO 2 .
AB - This article investigates whether residents of Mexico City value air quality. Our results suggest that air quality improvement in PM 10 is equivalent to a marginal willingness to pay (MWTP) of US$440.31 per property for the period 2006-2013. The corresponding MWTP for PM 2.5 is US$880.63, for O 3 is US$623.78, and for SO 2 is as much as US$2091.50. These estimates are considerably larger in magnitude compared to the few other studies in similar settings. As a percentage of annual household income, these represent 2.44 per cent for PM 10 , 4.88 per cent for PM 2.5 , 3.46 per cent for O 3 and 11.59 per cent for SO 2 . Our estimates of land value-pollution elasticities for PM 10 (-0.26 and - 0.58) are within range of hedonic estimates for total suspended particulate matter in US cities around the 1970s. The corresponding elasticities range from - 0.55 to - 0.84 for PM 2.5 , from - 0.06 to - 0.49 for O 3 and from - 0.11 to - 0.34 for SO 2 .
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U2 - 10.1017/S1355770X18000542
DO - 10.1017/S1355770X18000542
M3 - Article
AN - SCOPUS:85061137122
SN - 1355-770X
VL - 24
SP - 252
EP - 270
JO - Environment and Development Economics
JF - Environment and Development Economics
IS - 3
ER -