Defensive Technology and Welfare Analysis of Environmental Quality Change with Uncertain Consumer Health Impacts

Linda K. Lee and L. Joe Moffitt

American Journal of Agricultural Economics, 1993, vol. 75, issue 2, 361-366

Abstract: Measuring the ex post losses from environmental quality change is an important issue when environmental contamination creates health risks, liability is assigned, and private compensation efforts are required. This paper proposes a methodology for measuring the ex post welfare impact of environmental quality change using market behavior from defensive expenditures. Conditions under which a defensive technology can provide a bound on welfare estimates are identified.

Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:75:y:1993:i:2:p:361-366.

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