@article{c4434f742ac14f96954283a785b4f098,
title = "General equilibrium benefits for environmental improvements: Projected ozone reductions under EPA's Prospective Analysis for the Los Angeles air basin",
abstract = "This research demonstrates how locational equilibrium models can be used for benefit measurement with the detail required to match EPA's benefit analysis for the first Prospective Analysis. Using the projected changes in ozone concentrations for 2000 and 2010 together with the Sieg et al. (Int. Econ. Rev., forthcoming) estimates for household preferences for housing, education, and air quality, this paper measures general equilibrium willingness to pay for the policy scenarios developed for the Prospective study as they relate to households in the Los Angeles area. Benefits are evaluated taking account (at the household level) of initial air quality conditions, relocation based on changes in ozone, and price changes. The framework generalizes the partial equilibrium/general equilibrium comparisons available with conventional computable general equilibrium and property capitalization models. Estimated general equilibrium gains from the policy range from $33 to $2400 annually at a household level (in 1990 dollars).",
keywords = "Benefit analysis, Locational equilibrium, Ozone improvement",
author = "Smith, {V. Kerry} and Holger Sieg and Banzhaf, {H. Spencer} and Walsh, {Randall P.}",
note = "Funding Information: Thanks are due to Jim De Mocker of EPA, leader of the team of analysts responsible for the Prospective Analysis for assuring we were able to obtain the data necessary to complete this research, Allen Basala and Bryan Hubbell for helping us to understand them, to Leland Deck, James Neumann, and especially Kenneth Davidson for developing the data to match our modeling needs, to Maureen Cropper, Gilbert Metcalf, and Matt Kahn as well as the participants in NBER's Empirical Environmental Economics Conference and to Joseph Herriges and three anonymous referees for comments on several earlier drafts. Jaren Pope's excellent research assistance assured that the numerous Arcview issues required to link the geo-coded air quality data files for the EPA policy scenarios considered in this research would be compatible with our economic model. Susan Hinton assured the numerous drafts were prepared in a timely and consistent form. Partial support for this research was provided by the National Science Foundation NSF-S BR-98-08951, the US Environmental Protection Agency R828103, and the Alfred P. Sloan Foundation (for Sieg). ",
year = "2004",
month = may,
doi = "10.1016/j.jeem.2003.10.006",
language = "English (US)",
volume = "47",
pages = "559--584",
journal = "Journal of Environmental Economics and Management",
issn = "0095-0696",
publisher = "Academic Press Inc.",
number = "3",
}