Who counts in evaluating the effects of air pollution policies on households? Non-market valuation in the presence of dependencies

Mary F. Evans, Christine Poulos, V. Kerry Smith

Research output: Contribution to journalArticle

4 Scopus citations

Abstract

Individuals who are likely to realize the largest benefits from improvements in air quality often depend on other members of their households to make time or monetary contributions to their care. The presence of these dependency relationships among household members poses challenges for benefit estimation since it is unlikely that the conditions necessary for recovering the underlying individual preferences from household choices are satisfied in this setting. We propose a conceptual framework that highlights the role of these dependencies in the choice models used to estimate the willingness to pay for environmental quality improvements. We design a complementary stated preference survey that describes hypothetical dependency relationships for household members of different ages to test the implications of our conceptual model. Respondents stated choices take into account the proposed care-giving responsibilities for young children and teenagers but not for older adults.

Original languageEnglish (US)
Pages (from-to)65-79
Number of pages15
JournalJournal of Environmental Economics and Management
Volume62
Issue number1
DOIs
StatePublished - Jul 2011

Keywords

  • Air pollution
  • Dependency
  • Household decision making
  • Stated preference

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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