On estimating air pollution control benefits from land value studies

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.     

Bayesian nonlinear meta regression for benefit transfer

In recent years numerous meta-regression models for benefit transfer in the context of environmental quality changes have been proposed by the academic literature and used by government agencies for policy making. We examine a set of popular specifications in terms of consistency with some basic utility-theoretic considerations, including the adding-up condition that is currently under much scrutiny by benefit transfer practitioners. We also compare these models based on econometric fit with underlying data, and ability to generate meaningful and efficient benefit transfer distributions. We find that our preferred Bayesian Nonlinear Meta-Regression Model (BNL-MRM) satisfies all theoretical requirements. Using a built-in nonlinear model search algorithm we show that it produces benefit estimates that are comparable or superior in efficiency to those flowing from better fitting, but theoretically flawed linear models that do not satisfy adding-up.     

A framework for evaluating regional-scale numerical photochemical modeling systems

This paper discusses the need for critically evaluating regional-scale (~200–2,000 km) three-dimensional numerical photochemical air quality modeling systems to establish a model’s credibility in simulating the spatio-temporal features embedded in the observations. Because of limitations of currently used approaches for evaluating regional air quality models, a framework for model evaluation is introduced here for determining the suitability of a modeling system for a given application, distinguishing the performance between different models through confidence-testing of model results, guiding model development and analyzing the impacts of regulatory policy options. The framework identifies operational, diagnostic, dynamic, and probabilistic types of model evaluation. Operational evaluation techniques include statistical and graphical analyses aimed at determining whether model estimates are in agreement with the observations in an overall sense. Diagnostic evaluation focuses on process-oriented analyses to determine whether the individual processes and components of the model system are working correctly, both independently and in combination. Dynamic evaluation assesses the ability of the air quality model to simulate changes in air quality stemming from changes in source emissions and/or meteorology, the principal forces that drive the air quality model. Probabilistic evaluation attempts to assess the confidence that can be placed in model predictions using techniques such as ensemble modeling and Bayesian model averaging. The advantages of these types of model evaluation approaches are discussed in this paper.     

Cost-benefit analysis of implementing policy measures for reducing PM and O3 concentrations: the case of Israel

This paper aims to identify the most suitable and economically feasible policy measures to reduce concentrations of particulate matter (PM) and ozone (O₃) in Israel. It describes a comprehensive methodology that takes into account the effects of PM and O₃ and describes the overall costs and benefits expected from their reduction. Cost-benefit analysis of a series of proposed policy measures allows us to identify and recommend those that are most feasible and effective. These policy measures have a significant impact on reducing air pollution on one hand, while constituting the highest net benefit to the economy on the other.     

Who counts in evaluating the effects of air pollution policies on households? Non-market valuation in the presence of dependencies

Individuals who are likely to realize the largest benefits from improvements in air quality often depend on other members of their households to make time or monetary contributions to their care. The presence of these dependency relationships among household members poses challenges for benefit estimation since it is unlikely that the conditions necessary for recovering the underlying individual preferences from household choices are satisfied in this setting. We propose a conceptual framework that highlights the role of these dependencies in the choice models used to estimate the willingness to pay for environmental quality improvements. We design a complementary stated preference survey that describes hypothetical dependency relationships for household members of different ages to test the implications of our conceptual model. Respondents' stated choices take into account the proposed care-giving responsibilities for young children and teenagers but not for older adults.     

An integrated model of regional and local residential sorting with application to air quality

We examine the interconnectedness of demand for regionally and locally varying public goods using a residential sorting model. We propose a version of the model that describes household choices at the city (MSA) level and, conditional on city, the neighborhood (census tract) level. We use a two-stage budgeting argument to develop an empirically feasible sorting model that allows us to estimate preferences for regionally varying air quality while accounting for sorting at the local level. Our conceptual and empirical approach nests previous sorting models as special cases, allowing us to assess the importance of accounting for multiple spatial scales in our predictions for the cost of air pollution. Furthermore our preferred specification connects the city and neighborhood sorting margins to the upper and lower elements of a nested logit model, thereby establishing a useful correspondence between two stage budgeting and nested logit estimation. Empirically we find that estimates from a conventional model of sorting across MSAs imply a smaller marginal willingness to pay for air quality than estimates from our proposed model. We discuss how the difference is attributable in part to the omitted variable problems arising when tract level sorting is ignored.     

Hedonic housing prices and the demand for clean air

This paper investigates the methodological problems associated with the use of housing market data to measure the willingness to pay for clean air. With the use of a hedonic housing price model and data for the Boston metropolitan area, quantitative estimates of the willingness to pay for air quality improvements are generated. Marginal air pollution damages (as revealed in the housing market) are found to increase with the level of air pollution and with household income. The results are relatively sensitive to the specification of the hedonic housing price equation, but insensitive to the specification of the air quality demand equation.     

居民为改善北京市大气环境质量的支付意愿研究

用意愿调查价值评估法分析了北京市居民为改善大气环境质量的支付意愿 ,评估大气质量改善的价值 ,并对这一方法在我国的应用进行探讨。结果显示 ,研究范围内的居民为 5年内降低目前大气污染物质浓度的 5 0 %而支付费用的平均支付意愿是 143元 /户·年 (1999年元 ) ,该区域内居民总的支付意愿是 3 .36亿元 /年 (1999年元 ) ,被调查者的家庭收入、教育水平、家庭人口数和年龄等社会经济变量对支付意愿有显著影响。最后 ,对意愿调查价值评估法在我国应用时存在的问题进行了初步探讨     

大气臭氧污染的生物学指标监测评价

臭氧是具有很大危害性的大气污染物之一,近150年来大气对流层中的臭氧质量浓度已经增加了36%,在今后50～100年内还将以每年0.5%-2%的速度继续升高。植物对大气污染物的敏感性是由多种因素相互作用而成的复杂综合性状。以不同质量浓度（分别为0.0、1.0、2.0、3.0、4.0、5.0 mg·L-1）臭氧（O3）胁迫下的不同类型植物为例,观察植物在不同时间（2、4、6、8 h）的外观伤害症状和细胞膜透性与O3质量浓度的相关性。试验结果表明：不同植物对O3的敏感度不同,蔬菜对臭氧相对较敏感;低质量浓度长时间和高质量浓度短时间的作用条件下,植物的受害症状基本相同,典型症状表现为叶片上散布细密点状斑,斑点的颜色呈白色、黄色、棕褐色,也有褪绿斑;植物细胞膜透性数据即电导率直接反映植物受损程度。综合植物外观症状指标与生理生化指标建立了相对定量化的大气质量生物学指标评价模式,即划分为轻微（0-0.2）、轻度（0.2-0.4）、中度（0.4-0.6）、高度（0.6-0.8）、严重（0.8-1.0）5个受害等级,以定量的判断O3气体对植物的伤害。     

Urban ecosystem services: tree diversity and stability of tropospheric ozone removal

Urban forests provide important ecosystem services, such as urban air quality improvement by removing pollutants. While robust evidence exists that plant physiology, abundance, and distribution within cities are basic parameters affecting the magnitude and efficiency of air pollution removal, little is known about effects of plant diversity on the stability of this ecosystem service. Here, by means of a spatial analysis integrating system dynamic modeling and geostatistics, we assessed the effects of tree diversity on the removal of tropospheric ozone (O3) in Rome, Italy, in two years (2003 and 2004) that were very different for climatic conditions and ozone levels. Different tree functional groups showed complementary uptake patterns, related to tree physiology and phenology, maintaining a stable community function across different climatic conditions. Our results, although depending on the city-specific conditions of the studied area, suggest a higher function stability at increasing diversity levels in urban ecosystems. In Rome, such ecosystem services, based on published unitary costs of externalities and of mortality associated with O3, can be prudently valued to roughly US$2 and $3 million/year, respectively.     

Air quality improvement in Los Angeles—perspectives for developing cities

Air quality improvement in Los Angeles can inform air quality policies in developing cities. Emission control efforts, their results, costs and health benefits are briefly summarized. Today's developing cities face new challenges including regional pollution. Air quality issues in Beijing are briefly compared and contrasted with Los Angeles. Opportunities for co-benefits for climate and air quality improvement are identified. Air quality improvement in Los Angeles, California is reviewed with an emphasis on aspects that may inform air quality policy formulation in developing cities. In the mid-twentieth century the air quality in Los Angeles was degraded to an extent comparable to the worst found in developing cities today; ozone exceeded 600 ppb and annual average particulate matter <10 mm reached ~150 mg·m⁻³. Today's air quality is much better due to very effective emission controls; e.g., modern automobiles emit about 1% of the hydrocarbons and carbon monoxide emitted by vehicles of 50 years ago. An overview is given of the emission control efforts in Los Angeles and their impact on ambient concentrations of primary and secondary pollutants; the costs and health benefits of these controls are briefly summarized. Today's developing cities have new challenges that are discussed: the effects of regional pollution transport are much greater in countries with very high population densities; often very large current populations must be supplied with goods and services even while economic development and air quality concerns are addressed; and many of currently developing cities are located in or close to the tropics where photochemical processing of pollution is expected to be more rapid than at higher latitudes. The air quality issues of Beijing are briefly compared and contrasted with those of Los Angeles, and the opportunities for co-benefits for climate and air quality improvement are pointed out.     

The effect of pollution on crime: Evidence from data on particulate matter and ozone

We estimate the effect of short-term air pollution exposure (PM_2.5 and ozone) on several categories of crime, with a particular emphasis on aggressive behavior. To identify this relationship, we combine detailed daily data on crime, air pollution, and weather for an eight-year period across the United States. Our primary identification strategy employs extremely high dimensional fixed effects and we perform a series of robustness checks to address confounding variation between temperature and air pollution. We find a robust positive effect of increased air pollution on violent crimes, and specifically assaults, but no relationship between increases in air pollution and property crimes. The effects are present in and out of the home, at levels well below Ambient Air Pollution Standards, and PM_2.5 effects are strongest at lower temperatures. The results suggest that a 10% reduction in daily PM_2.5 and ozone could save $1.4 billion in crime costs per year, a previously overlooked cost associated with pollution.     

Willingness to pay for clean air in China

We use a residential sorting model incorporating migration disutility to recover the implicit value of clean air in China. The model is estimated using China Population Census Data along with PM2.5 satellite data. Our study provides new evidence on the willingness to pay for air quality improvements in developing countries and is the first application of an equilibrium sorting model to the valuation of non-market amenities in China. We employ two instrumental variables based on coal-fired electricity generation and wind direction to address the endogeneity of local air pollution. Results suggest important differences between the residential sorting model and a conventional hedonic model, highlighting the role of moving costs and the discreteness of the choice set. Our sorting results indicate that the economic value of air quality improvement associated with a one-unit decline in PM2.5 concentration is up to $8.83 billion for all Chinese households in 2005.     

A high capacity ozone generator for use in aquaculture and water processing

The literature dealing with the use of ozone in wastewater treatment is extensive, but its reported applications to aquaculture are limited. The major limiting factors appear to be ozone toxicity and the cost of high-output ozone generators. Ozone toxicity may be circumvented by system design, thereby leaving generating equipment as the major obstacle. A small, high-output ozone generator, therefore, was designed utilizing the efficient Lowther plate-type principle. The unit, employing stainless-steel wire-mesh electrodes and mica dielectrics, may be used with air, oxygen, or oxygen-enriched air. Ozone production from air was evaluated at 0.125, 0.25 and 0.5 cfm (3.54, 7.08 and 14.2 l/min) and oxygen at 0.25 cfm (7.08 l/min). Maximum output from air (0.25 cfm; 2.95 kV) was 84.1 g/h. Oxygen under identical conditions resulted in a production rate of 142.7 g/h. The application of this new ozone-generator design is recommended for water treatment in both open-and closed-water systems.Contribution No. 343, Department of Biology.     

Direct-use values of woodland resources consumed and traded in a South African village

SUMMARY

This paper examines the contribution of secondary resources harvested from a savanna ecosystem to household income in Thorndale village, South Africa. The valuation of these resources provides a key tool for adopting sustainable development practices. The study shows the relevance of the dependence of rural people on secondary resources and implications for social and economic equity. Fuelwood, edible herbs and thatch grass contributed 80.6% ($492.53) of the total gross direct-use value ($559.46) of all the resources per household per annum. The net direct-use value of eight directly harvested resources was $455.11 after accounting for the opportunity cost of labour. The value of secondary resources traded amounted to $126.62 per household, equivalent to 22.6% of values from direct consumption, suggesting a high degree of dependence of villagers on natural resources harvested for household consumption. There were high relative direct-use values for fuelwood (44%) and edible herbs (25.9%) reflecting the high energy requirement, and substitute for cultivated vegetables, respectively. It was generally perceived that resources were in short supply probably due to the level of dependence, and as a coping strategy.     

Intercontinental transport of air pollution

There is an increasing interest on the intercontinental transport of air pollution among the three main emission regions at northern mid-latitudes: North America, Europe, and East Asia. Air pollutants with sufficient long lifetime can be transported from one continent to another. Observations from ground sites, aircraft and satellites have demonstrated this intercontinental-scale transport of air pollutants in the free troposphere. Numerical models have been applied to understand the pathways of the transport and the impact of intercontinental pollution transport. This paper reviews current observational evidence and modeling studies of intercontinental transport of ozone and its precursors, and the resulting impacts on air quality.     

Heterogeneous firms and the environment: a cap-and-trade program

Currently, cap-and-trade programs are a cornerstone of many countries' climate change policies and proposals. This paper investigates the economic and environmental effects of different climate change policy designs in a general equilibrium setting with heterogeneous firms and monopolistic competition. The analysis predicts that the cap on emissions perfectly defines the environmental quality but has no effect on firms' profits, or decisions to enter or exit the market. In contrast, increasing the share of free allocations of emission allowances, as opposed to auctions, has no effect on environmental quality but reallocates resources among firms toward the most productive ones which has an impact on firms' entry and exit decisions, the mass of firms, and the composition of the market. Firm heterogeneity magnifies these economic effects of changes in the initial allocation of allowances. The paper provides a decomposition of the change in aggregate emissions which takes account of the changes at sector level, across the firms within a sector, and at the firm level.     

Valuing nature in a general equilibrium

We explore the consequences of modeling the demand for environmental quality improvements as a fully integrated part of a general equilibrium demand system in an applied general equilibrium (or CGE) analysis. Demand for non-market goods depends on a full range of relative prices as well as environmental outcomes. We simulate the effects of reducing two air pollutants to improve human health and three ecosystem services provided to households. The ecosystem services make non-separable contributions to household utility. We find that willingness to pay measures of use-based ecosystem services are impacted by changes in demand for complementary market goods. Demand for these goods shifts due to pollution reductions that enhance ecosystem services. Partial equilibrium estimates of these use values can be measured with substantial error if they fail to account for the general equilibrium adjustments caused by pollution. Over 300 calibrations of the model identify the model features important to these errors. We find that effects on ecosystem services associated with non-use values have important implications for the feedback effects on use related measures of economic tradeoffs. This is due to how our model integrates market and non-market effects, reflecting the non-market services importance to general equilibrium market outcomes.     

A regional environmental quality management model: An assessment

The principal purpose of this paper is to discuss the research and policy lessons learned from a large environmental quality management model constructed for the Lower Delaware River Valley Region, The policy lessons involve estimates of the costs of meeting varying standards on air and water quality and the impact on those costs of certain region-wide management alternatives. The research lessons concern: (a) the desirability of considering air and water quality, and solid waste disposal, simultaneously in a single model; (b) the costs of and returns to including nonlinear models of natural systems in a regional optimization framework; and (c) the feasibility of working with constraints on the geographic distribution of the costs of environmental quality improvement within the regional, nonlinear model.     

Household incidence of pollution control policies: A robust welfare analysis using general equilibrium effects

This study assesses the incidence of pollution control policies on households. In contrast to previous studies, we employ an integrated framework combining a multisector general equilibrium model with a stochastic dominance analysis using household-level data. We consider three policy instruments in a domestic emission trading system: (i) an output-based allocation (OBA) of permits; (ii) the use of the proceeds of permit sales to reduce payroll taxes (RPT); (iii) and the use of these proceeds to reduce consumption taxes instead (UCS). The general equilibrium results suggest that the return to capital is more negatively affected than the wage rate in all simulations, since polluting industries are capital intensive. Abstracting from pollution externalities, the dominance analysis suggests that all three policies have a normatively robust negative (positive) impact on welfare (poverty). Formal dominance tests indicate that RPT first-order welfare dominates OBA over all values of household incomes. UCS also first-order poverty dominates RPT for any choice of poverty line below $CAN 18,600, and poverty dominates for any poverty line (and thus welfare dominates) at the second order. Finally, while the three pollution control policies do not have a numerically large impact on inequality (in comparison to the base run), statistical tests indicate that inequality increases significantly more with OBA and RPT than with UCS.