The demand for air quality: evidence from the housing market in Bogotá, Colombia.

Identifying a demand function for air quality is a key input to calculate welfare measurements of pollution abatement policies. We defined intra-urban housing submarkets to apply a Second Stage hedonic pricing model that allowed us to identify an inverse demand function for PM10 reductions in Bogotá...

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Publicado en:Environment & Development Economics Vol. 23; no. 2; pp. 121 - 139
Autores principales: Carriazo, Fernando, Gomez-Mahecha, John Alexander
Formato: Artículo
Publicado: Cambridge University Press Apr2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The demand for air quality: evidence from the housing market in Bogotá, Colombia.
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          Carriazo, Fernando
          Gomez-Mahecha, John Alexander
        affil:
          Universidad del Rosario, Calle 12C No. 6-25 – Bogotá DC, Colombia
          Universidad de Los Andes, Bogotá, Colombia
      su:
        Housing market
        Air pollution
        Air quality & the environment
      sug:
        subj:
          Housing market
          Air pollution
          Air quality & the environment
      keyword:
        Bogotá
        EPA
        hedonic models
        housing markets
        Q51
        Q53
        R31
        Bogotá
        EPA
        hedonic models
        housing markets
        Q51
        Q53
        R31
      ab: Identifying a demand function for air quality is a key input to calculate welfare measurements of pollution abatement policies. We defined intra-urban housing submarkets to apply a Second Stage hedonic pricing model that allowed us to identify an inverse demand function for PM10 reductions in Bogotá. The monthly benefits of compliance with the U.S. Environmental Protection Agency standard (50 μg/m3 – annual average), and the far more stringent World Health Organization standard (20 μg/m3 – annual average) are valued at US$12.16 and US$189.64 per household, respectively. These values, in turn, represent about 1.35 per cent and 21.04 per cent of the average household income. The hedonic model applied hereby shows that intra-urban housing submarkets are suitable for the identification of a demand function to be used by policy makers interested in evaluating non-marginal benefits (costs) from air quality improvements (deterioration).
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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