Do Mexicans care about air pollution?
DOI:
https://doi.org/10.1007/s40503-014-0009-zKeywords:
Particulate matter, Migration costs, Discrete choice models, Valuation of air quality in MexicoAbstract
Mexico has many major problems such as corruption, poverty, illiteracy, unemployment, pollution, etc. Regarding pollution, politicians have established some programs trying to improve air quality in Mexico. But they do not know if Mexicans care about air pollution or they prefer that government faces other problems. This paper answers this question and in fact, we conclude that Mexicans do care about air pollution (measured by Particulate Matter) and they agree to pay to reduce it. This paper follows a residential sorting model to calculate marginal willingness to pay for a reduction in air pollution. Our estimates imply that the household head in Mexico would pay $443.66 to $2,682.92 (in constant 2000 Mexican pesos) or 46.90–283.61 (2000 dollars) for a one-unit reduction in Particulate Matter emissions per year. Therefore, there are benefits to reduce this problem in Mexico and the government and private firms must face this problem since the costs are lower than those benefits.
References
Bayer P, Keohanie N, Timmins C (2009) Migration and hedonic valuation: the case of air quality. J Environ Econ Manag 58(1):1–14
Boyle K, Poor J, Taylor L (1999) Estimating the demand for protecting freshwater lakes in eutrophication. Am J Agric Econ 81:1118–1122
Chay K, Greenstone M (2005) Does air quality matter? Evidence from the housing market. J Polit Econ 113(2):376–424
Consejo Nacional de Población (CONAPO) (2009) Población en México. http://www.conapo.gob.mx/es/CONAPO/Proyecciones Accessed 1 Aug 2010
Forbes (2008) The World’s Dirtiest Cities http://www.forbes.com/2008/02/26/pollution-baku-oil-biz-logistics-cx_tl_0226dirtycities.html. Accessed 15 Aug 2013
Graves P, Murdoch J, Thayer M, Waldman D (1988) The robustness of hedonic price estimation: urban air quality. Land Econ 64(3):220–233
Hammitt J, Ibarraran E (2006) The economic value of reducing fatal and non-fatal occupational risks in Mexico City using actuarial- and perceived-risk estimates. Health Econ Lett 15:1329–1335
Harrison D, Rubinfeld D (1978) Hedonic housing prices and the demand for clean air. J Environ Econ Manag 5:81–102
Heckman J, Matzkin R, Nesheim L (2004) Simulation and estimation of hedonic models. In: Frontiers in applied general equilibrium modeling. Cambridge University Press
Holguín F et al (2003) Air pollution and heart rate variability among the elderly in Mexico City. Epidemiology 14:521–527
INECC (2006) Inventario Nacional de Emisiones de México 1999. Publicación Oficial Instituto Nacional de Ecología
INEGI (2005a) Censo General de Población y Vivienda 2000 http://www.inegi.org.mx/sistemas/olap/proyectos/bd/consulta.asp?c=10252&p=14048&s=est. Accessed 15 Aug 2013
INEGI (2005b) Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH). Publicación Oficial INEGI
INEGI (2006) Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH). Publicación Oficial INEGI
INEGI (2007) Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH). Publicación Oficial INEGI
INEGI (2009) Consulta interactiva de datos http://www.inegi.org.mx/est/contenidos/proyectos/cubos/. Accessed 15 Aug 2013
Loomis D et al (1999) Air pollution and infant mortality in Mexico City. Epidemiol Resour Inc 10:118–123
Palmquist R, Smith K (2001) The use of hedonic property value techniques for policy and litigation. International yearbook of environmental and resource economics, vol 6
Progama de las Naciones Unidas para el Desarrollo (PNUD) (2007) Informe sobre Desarrollo Humano México 2006–2007 http://www.undp.org.mx/desarrollohumano/informes/index.html. Accessed 15 Aug 2013
Rosen S (1974) Hedonic prices and implicit markets: product differentiation in pure competition. J Polit Econ 82:34–55
Sattinger M (1993) Assignment models of the distribution of earnings. J Econ Literature 31:831–880
SEMARNAT (2010) Programa para Mejorar la Calidad del Aire de la Zona Metropolitana del Valle de México 2011–2020 (PROAIRE)
Train K (2009) Discrete choice methods with simulation. Cambridge University Press, Cambridge
Viscusi K (1993) The value of risks to life and health. J Econ Literature 31:1912–1946
World Bank (2002) Improving air quality in metropolitan Mexico City. World Bank Report, 1–62
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
LAER Copyright and License
Authors submitting articles to Latin American Economic Review (LAER), automatically grant this journal a license to publish. Copyright of all published material remains with the authors, who can reuse it in future work without needing to make reference to LAER. Similarly, any other contribution of material to the website (for example text, photographs, graphics, video or audio) automatically grants us a right to publish. Copyright, however, remains with the author(s).
Authors release their work under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0). This license allows anyone to copy, distribute and transmit the work, provided the use has no derivatives, is non-commercial and appropriate credit to the author(s) is given. (If you remix, transform, or build upon the material, you may not distribute the modified material.)
A human-readable summary of the licence:
https://creativecommons.org/licenses/by-nc-nd/4.0/
Full legal text: