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The value of air quality and crime in Chile: a hedonic wage approach*
Published online by Cambridge University Press: 04 February 2011
Abstract
We estimate the implicit prices of the crime rate and airborne pollution in Chile, using spatially compensating price differentials in the housing and labor markets. We evaluate empirically the impact of different estimation strategies for the wage and rent equations, on the economic value of these two amenities. The results show that increments in the crime rate or in air pollution have a negative impact on welfare and that the estimated welfare measures and their variances are sensitive to selection bias, endogenous amenities and clustering effects. In contrast, the welfare measures do not seem to be very sensitive to the simultaneity bias.
- Type
- Research Article
- Information
- Environment and Development Economics , Volume 16 , Special Issue 3: CRITICAL ENVIRONMENTAL AND DEVELOPMENT ISSUES IN LATIN AMERICA , June 2011 , pp. 329 - 355
- Copyright
- Copyright © Cambridge University Press 2011
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