On estimating air pollution control benefits from land value studies
Generate an AI Snapshot to get a quick, structured summary of this paper.
A concise AI-generated summary of the paper will appear here once you click Generate AI Snapshot.
Abstract
This paper deals with some unresolved issues in interpreting empirical property value/air pollution studies. A model is developed in which it is shown that in general regressions of property values on pollution variables do not identify the demand curve for clean air. However since the first derivative of the observed rent function is a locus of household equilibrium marginal willingnesses to pay, aggregate benefits can be calculated directly. The possibilities for obtaining approximate measures of aggregate benefits for nonmarginal changes in air quality are also discussed.