Willingness to pay for mortality risk reduction associated with air pollution in São Paulo

Reference:

Ortiz, R., Markandya, A. and Hunt, A., 2009. Willingness to pay for mortality risk reduction associated with air pollution in São Paulo. Revista Brasileira de Economia, 63 (1), pp. 3-22.

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Abstract

Epidemiological studies report significant association between air pollution and cardiovascular and respiratory mortality. Governmental intervention is required to implement policies aiming to increase air quality, and cost-benefit analysis can be useful to evaluate such policies. Reductions in risks of death are arguably the most important benefit underlying air-quality policies, and therefore need to be valued in money terms. This paper presents a contingent valuation study conducted in São Paulo to estimate the population’s willingness to pay (WTP) to reduce their risk of death and the correspondent value of a statistical life (VSL). Results ranged between US$ 0.77 – US$ 6.1 million.

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