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

Fernando Carriazo and John Alexander Gomez

No 212855, Documentos CEDE Series from Universidad de Los Andes, Economics Department

Abstract: 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.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 54
Date: 2015-11-17
New Economics Papers: this item is included in nep-ene, nep-env and nep-lam
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ulaedd:212855

DOI: 10.22004/ag.econ.212855

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