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MEASURING VALUES FOR IMPROVED AIR QUALITY FROM DISCRETE RESPONSE DATA: TWO EXPERIMENTS
Author(s) -
Johansson P. O.,
Kriström B.
Publication year - 1988
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1988.tb00603.x
Subject(s) - willingness to pay , measure (data warehouse) , air quality index , order (exchange) , value (mathematics) , quality (philosophy) , econometrics , economics , air pollution , environmental economics , statistics , environmental science , agricultural economics , mathematics , microeconomics , computer science , geography , meteorology , finance , philosophy , chemistry , organic chemistry , epistemology , database
This paper derives and estimates two different measures of the value of an elimination of sulphur emissions in Sweden. One measure is a usual willingness‐to‐pay measure, while the other measure yields the willingness to offer jobs in the industry in order to secure an improvement in air quality. According to both approaches, the average willingness to pay for an improvement in air quality is surprisingly high: 4 to 5 per cent of disposable income and 3 to 4 per cent of the total number of jobs in Sweden, respectively. These figures suggest that it is socially profitable to undertake further measures to reduce air pollution in Sweden given existing estimates of cleaning costs.