Who Counts in Evaluating the Effects of Air Pollution Policies on Households? Non-Market Valuation in the Presence of Dependencies

Mary Evans, Christine Poulos and V. Smith

No 15366, NBER Working Papers from National Bureau of Economic Research, Inc

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' choices take into account the care-giving responsibilities for young children and teenagers but not for older adults.

JEL-codes: H41 Q51 (search for similar items in EconPapers)
Date: 2009-09
New Economics Papers: this item is included in nep-env
Note: EEE
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Citations: View citations in EconPapers (1)

Published as Evans, Mary F. & Poulos, Christine & Kerry Smith, V., 2011. "Who counts in evaluating the effects of air pollution policies on households? Non-market valuation in the presence of dependencies," Journal of Environmental Economics and Management, Elsevier, vol. 62(1), pages 65-79, July.

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Journal Article: Who counts in evaluating the effects of air pollution policies on households? Non-market valuation in the presence of dependencies (2011)
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