The benefit of environmental improvement in the southeastern United States: Evidence from a simultaneous model of cancer mortality, toxic chemical releases and house values*

Chau‐Sa Ho and Diane Hite

Papers in Regional Science, 2008, vol. 87, issue 4, 589-604

Abstract: Abstract A simultaneous model of house values, cancer mortality and total releases is estimated to study the economic cost of environmental health risks. Health risks include county level total releases from the Toxics Release Inventory, number of Superfund sites, and cancer mortality in the Southeastern U.S. The generalized spatial two stage least squares model is applied to obtain parameter estimates. Results suggest the average value of statistical life for a representative at the county level to be 4.77 million in 2000 dollars. Further, based on model simulations, we find that a 1 percent reduction in releases should result in the total benefits of $3.3 billion in perpetuity. Resumen Se estima un modelo simultáneo de valor de la vivienda, mortalidad por cáncer y emisiones totales para estudiar el costo económico de los riesgos de salud medioambiental. Los riesgos de salud incluyen emisiones totales a escala de condado del Censo de Emisiones Tóxicas, número de sitios de Superfund y la mortalidad por cáncer en el sureste de los EE.UU. Se aplica el modelo espacial generalizado de mínimos cuadrados bietápico para obtener estimaciones de los parámetros. Los resultados indican que el valor promedio estadístico de la vida a escala de condado es de US$4.77 millones en el año 2000. Además, basado en simulaciones con un modelo, encontramos que una reducción de un 1% en las emisiones debería resultar en unos beneficios totales de US$3,300 millones a perpetuidad.

Date: 2008
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https://doi.org/10.1111/j.1435-5957.2008.00179.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:presci:v:87:y:2008:i:4:p:589-604

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