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The economic value of air-pollution-related health risks in China

Guo, Xiaoqi
http://rave.ohiolink.edu/etdc/view?acc_num=osu1155652414

Abstract Details

2006, Doctor of Philosophy, Ohio State University, Agricultural, Environmental and Development Economics.
This dissertation studies the economic valuation of air-pollution-related health risks in China, by applying two different valuation methods: the compensating wage differential method and the contingent valuation method. By using the compensating wage differential (CWD) method, the tradeoff between workers’ wage and the on-the-job fatality risk workers bear in the labor market is estimated, with consideration of the market opportunities faced by workers in different regions. The result shows that a positive compensating wage differential for on-the-job fatality risk exists in China; and this wage differential convexly decreases with the local unemployment rate. The value of a statistical life (VSL) computed from the estimate varies from US$12,000 to US$120,000. By using the contingent valuation (CV) method, an individual interview survey is conducted to elicit resident’s willingness-to-pay (WTP) for health risk reductions of asthma and mortality. The questionnaire is designed to test the hypothesis that the private provision and the public/government provision mechanisms of the health risk reductions have no significantly different effect to people’s WTP. The results of binary probit regressions show that the public/government provision mechanism has no significant effect to people’s WTP for the asthma risk reduction, whereas it has a significantly negative effect to the WTP for the mortality risk reduction. Within-group analysis shows that perceived effectiveness and trust are the major reasons of the stated preference of respondents on the provision mechanisms. The scope/scale effects of WTP to the magnitude of risk reduction and to the description of the severity of disease symptoms are also tested. The estimated median value of a statistical case of asthma from the CV study is about US$2400, while the median VSL estimated is about US$24,000. Possible reasons of the discrepancy between the VSL generated by the CWD and CV methods are discussed. Comparing these results to the results of other studies, I suggest the interval of US$20,000 to US$60,000 as the VSL for researchers and policy makers. This dissertation brings international experience and understanding to the undeveloped field of environmental health valuation in China; and ultimately it would strengthen the scientific basis of environmental decision-making in China.
Timothy Haab (Advisor)
127 p.
Economics, General
Non-market Valuation of Health Risks; Compensating Wage Differential Method; Contingent Valuation Method; Value of a Statistical Life; Willingness-to-Pay for Health Risk Reduction; China; Air Pollution

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Citations

  • Guo, X. (2006). The economic value of air-pollution-related health risks in China [Doctoral dissertation, Ohio State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=osu1155652414

    APA Style (7th edition)

  • Guo, Xiaoqi. The economic value of air-pollution-related health risks in China. 2006. Ohio State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=osu1155652414.

    MLA Style (8th edition)

  • Guo, Xiaoqi. "The economic value of air-pollution-related health risks in China." Doctoral dissertation, Ohio State University, 2006. http://rave.ohiolink.edu/etdc/view?acc_num=osu1155652414

    Chicago Manual of Style (17th edition)

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© 2006, all rights reserved.
This open access ETD is published by The Ohio State University and OhioLINK.