Economists use the willingness survey method, the characteristic price method, and the subjective well-being measure to estimate the value of air pollution so that the effects of haze and environmental protection policies can enter the public's view in a more specific, measurable, and comparable form. It also provides policymakers with the tools to measure the effectiveness of policy implementation, which is one of the contributions of economists to smog governance. According to the measure, the reduction of three types of pollutants such as PM10, SO2 and NO2 per 1μg/m3 is equivalent to the increasing income of 344 yuan, 45 yuan, and 232 yuan.
References:
(1) Arrow K. J., Solow R., Portney P. R., Leamer E. E., Radner R., Schuman H., 1993, "Report of the NOAA panel on Contingent Valuation", Federal Register, 58(3), pp.48~56.
(2) Carson R. T. & Mitchell R. C., 1993, "The Value of clean water: The public's willingness to pay for boatable, fishable, and swimmable quality water", Water Resources Research, 29(7), pp.2445~2454.
(3) Carson R. T., Flores N. E., Meade N. F., 2001, "Contingent Valuation: Controversies and Evidence", Environmental and Resource Economics, 19(2), pp.173~210.
(4) Chay K. X., Y., Greenstone M., 2005, "Does Air Quality Matter? Evidence from the Housing Market", Journal of Political Economy, 113(2), pp.376~424.
(5) Levinson A., 2012, "Valuing public goods using happiness data: The case of air quality", Journal of Public Economics, 96(9–10), pp.869~880.
(6) Chen Yongwei, & Shi Yupeng. (2013). Air Quality Pricing from the Perspective of HappinessEconomics——Based on the Research of cfps2010 Data. Economic Science, Vol.35(6), 77-88.
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