The Demand for Air Quality: A Case study in Bogotá, Colombia

Using a (second stage) hedonic housing model, this paper identifies an inverse demand function for air quality in Bogota, the fourth most polluted city in Latin America (annual average of PM10 52 mg/m3). We use precipitation and distance to monitoring stations as instruments for pollution. We found that the monthly benefits of compliance with the U.S Environmental Pollution Agency standard (50 mg/m3 – annual average), and the far more stringent World Health Organization standard (20 mg/m3 – annual average) are U$7.12 and U$72.91per household respectively. Accordingly, these values represent about 1% and 8% of the average household income.


Issue Date:
Nov 17 2015
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/212855
Page range:
1-54
Total Pages:
54
JEL Codes:
Q51 Q53 R31
Series Statement:
Documento CEDE
2015-40




 Record created 2017-04-01, last modified 2017-04-26

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