Using a Choice Experiment to Estimate the Benefits of a Reduction of Externalities in Urban Areas with Special Focus on Electrosmog

Silvia Banfi (), Massimo Filippini and Andrea Horehájová ()
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Silvia Banfi: Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland
Andrea Horehájová: Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland

No 07-58, CEPE Working paper series from CEPE Center for Energy Policy and Economics, ETH Zurich

Abstract: Noise, air pollution and electromagnetic pollution (i.e. non-ionizing radiation, also called electrosmog) are typical negative local externalities in urban areas. They are side-effects of human and economic activity (e.g. road transport, telecommunication) and affect individuals’ well-being negatively without compensation. Measurements carried out in 2005 and 2006 show that in several Swiss cities the limit values of air pollution fixed in the Swiss law have often been exceeded. Moreover, in several areas of these cities also the day and night standards for the noise level were violated. Further, the increased number of mobile phone antennas in residential areas, and thus the increased intensity of radiated power, has, in recent years, aroused public concern, discussions and protests. The view of an antenna is annoying an increasing number of inhabitants. In order to solve these problems, policy-makers have to introduce new environmental instruments to improve the quality of the environment in the Swiss cities. This paper aims at giving policy-makers information on benefits generated by an improvement of local environmental quality. In two Swiss cities (Lugano and Zurich), stated choice experiment is used to estimate the benefits of a reduction of the level of the negative externalities mentioned above. Results from this choice experiment reveal that there is a positive and significant willingness to pay (WTP) for a reduction of the level of air pollution and noise to those limit values fixed by the government. In addition, this is the first study that uses a stated preference approach based on a choice experiment for the estimation of the benefit of a reduction of electrosmog.

Keywords: choice experiment; electrosmog; noise; air pollution (search for similar items in EconPapers)
JEL-codes: C25 C93 Q51 R21 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2007-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Using a choice experiment to estimate the benefits of a reduction of externalities in urban areas with special focus on electrosmog (2012)
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