Environmental Economics

Valuing Gains and Losses in Visibility and Health with Contingent Valuation

Two different willingness to pay responses are compared - willingness to pay to avoid loss of air quality and willingness to pay to obtain gains in air quality - for visibility and health. Contingent valuation data were used to estimate bid functions for these two types of responses. Comparison of the estimated models indicates that, in addition to magnitude differences, there may be differences in how gains and losses for visibility and health are affected by risk perceptions and other risk-related variables. By comparing empirical results to theory of bid curves, income and health appear to be complements whereas income and visibility may be substitutes.

  • Keywords

    Subject:
    1. Benefits Analysis
    1. Benefits Analysis - Valuation
    1. Benefits Analysis - Valuation - Stated Preference
    1. Benefits Analysis - Valuation - Stated Preference - Contingent Valuation
    Environmental Media:
    a. Air
    a. Air - Tropospheric
    Authors:
    Loehman, Edna
    Boldt, David
    EPA Project Officer/ Manager:
    Carlin, Alan
    Geographic Area:
    Study Purpose:
    Empirical Application, Methodology Development & Evaluation
    Inventory Record #: EE-0020
  • Participating Organizations

    Research Organization:

    Purdue University, Department of Agricultural EconomicsAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
    Funding Organization:
    Environmental Protection Agency, Office of Research and DevelopmentAddress:
    City: State: ZIP:
    Phone: Fax:
    E-mail:
  • Report Details
    Type:
    Final
    Date:
    01/01/1990
    Number of Pages:
    47
    Comment:
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    Date Linked: 05/28/2009