Welfare Impacts of Air Quality Changes in Malaysia: The Hedonic Pricing Approach

Jamal Othman, Redzuan Othman and Nor Ghani Md Noor
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Jamal Othman: Pusat Pengajian Ekonomi Universiti Kebangsaan Malaysia 43600 UKM Bangi, Selangor D.E Malaysia
Redzuan Othman: Pusat Pengajian Ekonomi Universiti Kebangsaan Malaysia 43600 UKM Bangi, Selangor D.E Malaysia
Nor Ghani Md Noor: Pusat Pengajian Ekonomi Universiti Kebangsaan Malaysia 43600 UKM Bangi, Selangor D.E Malaysia

Jurnal Ekonomi Malaysia, 2006, vol. 40, 47-58

Abstract: This study employs the Hedonic Pricing Model(HPM) to assess the welfare impacts of air quality changes in Malaysia. Result from second stage HPM indicate that households on average derive benefits (welfare gain) of some RM19 for every unit of improvement in air quality index (API) in relation to the baseline API level. This finding provides an insight of the magnitude of wefare gain or loss due to air quality changes.

Date: 2006
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