dc.contributor.author |
Bayer, P |
|
dc.contributor.author |
Keohane, N |
|
dc.contributor.author |
Timmins, C |
|
dc.date.accessioned |
2010-03-09T15:41:35Z |
|
dc.date.issued |
2009-07-01 |
|
dc.identifier.issn |
0095-0696 |
|
dc.identifier.uri |
https://hdl.handle.net/10161/2025 |
|
dc.description.abstract |
Conventional hedonic techniques for estimating the value of local amenities rely on
the assumption that households move freely among locations. We show that when moving
is costly, the variation in housing prices and wages across locations may no longer
reflect the value of differences in local amenities. We develop an alternative discrete-choice
approach that models the household location decision directly, and we apply it to
the case of air quality in US metro areas in 1990 and 2000. Because air pollution
is likely to be correlated with unobservable local characteristics such as economic
activity, we instrument for air quality using the contribution of distant sources
to local pollution-excluding emissions from local sources, which are most likely to
be correlated with local conditions. Our model yields an estimated elasticity of willingness
to pay with respect to air quality of 0.34-0.42. These estimates imply that the median
household would pay $149-$185 (in constant 1982-1984 dollars) for a one-unit reduction
in average ambient concentrations of particulate matter. These estimates are three
times greater than the marginal willingness to pay estimated by a conventional hedonic
model using the same data. Our results are robust to a range of covariates, instrumenting
strategies, and functional form assumptions. The findings also confirm the importance
of instrumenting for local air pollution. © 2009 Elsevier Inc. All rights reserved.
|
|
dc.format.mimetype |
application/pdf |
|
dc.language.iso |
en_US |
|
dc.publisher |
Elsevier BV |
|
dc.relation.ispartof |
Journal of Environmental Economics and Management |
|
dc.relation.isversionof |
10.1016/j.jeem.2008.08.004 |
|
dc.title |
Migration and hedonic valuation: The case of air quality |
|
dc.type |
Journal article |
|
duke.contributor.id |
Bayer, P|0407560 |
|
duke.contributor.id |
Timmins, C|0331720 |
|
pubs.begin-page |
1 |
|
pubs.end-page |
14 |
|
pubs.issue |
1 |
|
pubs.organisational-group |
Duke |
|
pubs.organisational-group |
Duke Population Research Center |
|
pubs.organisational-group |
Duke Population Research Institute |
|
pubs.organisational-group |
Economics |
|
pubs.organisational-group |
Environmental Sciences and Policy |
|
pubs.organisational-group |
Nicholas School of the Environment |
|
pubs.organisational-group |
Sanford School of Public Policy |
|
pubs.organisational-group |
Trinity College of Arts & Sciences |
|
pubs.publication-status |
Published |
|
pubs.volume |
58 |
|
dc.identifier.eissn |
1096-0449 |
|