{
  "title": "Willingness to Pay for Clean Air: Evidence from the UK",
  "publication": "IMF Working Papers, February 17, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2023/02/17/willingness-to-pay-for-clean-air-evidence-from-the-uk-529966",
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  "summary": "This paper uses life satisfaction data to help the design of climate mitigation policies in the United Kingdom. We assess the effects of the exposure to ambient pollutants on long-term life satisfaction and short-term mental health in the UK.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- This paper uses life satisfaction data to help the design of climate mitigation policies in the United Kingdom.\n- It assesses the effects of exposure to ambient pollutants on long-term life satisfaction and short-term mental health in the UK.\n- The willingness to pay for clean air is found to be significant and increases with level of education.\n- The measurements derived can be used as benchmarks for pollution abatement subsidies or pollution taxes and can help in projecting a more comprehensive assessment of costs and benefits."
    },
    {
      "heading": "Methods and Data",
      "content": "- Estimated augmented Cobb-Douglas utility functions.\n- Econometric approach: pooled and random effects ordinal logit models.\n- Outcome measures: long-term happiness (life satisfaction) and short-term mental health.\n- Pollutants analyzed: NO2, PM10, PM2.5."
    },
    {
      "heading": "Key Findings",
      "content": "- Increases in NO2, PM10 and PM2.5 significantly decrease the odds of long-term happiness in the UK.\n- Increases in NO2, PM10 and PM2.5 significantly decrease the odds of short-term mental health in the UK.\n- Willingness to pay for clean air is significant and increases with level of education."
    },
    {
      "heading": "Policy Implications",
      "content": "- Empirical willingness-to-pay measurements can serve as benchmarks for:\n  - Pollution abatement subsidies.\n  - Pollution taxes.\n- These measurements can help project a more comprehensive assessment of costs and benefits for climate mitigation policies in the UK.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2023/02/17/willingness-to-pay-for-clean-air-evidence-from-the-uk-529966"
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    "Authors: Giorgio Maarraoui, Walid Marrouch, Faten Saliba, Ada Wossink",
    "Published: February 17, 2023",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400234668.001",
    "This paper uses life satisfaction data to help the design of climate mitigation policies in the United Kingdom.",
    "It assesses the effects of exposure to ambient pollutants on long-term life satisfaction and short-term mental health in the UK.",
    "The willingness to pay for clean air is found to be significant and increases with level of education.",
    "The measurements derived can be used as benchmarks for pollution abatement subsidies or pollution taxes and can help in projecting a more comprehensive assessment of costs and benefits.",
    "Estimated augmented Cobb-Douglas utility functions.",
    "Econometric approach: pooled and random effects ordinal logit models.",
    "Outcome measures: long-term happiness (life satisfaction) and short-term mental health.",
    "Pollutants analyzed: NO2, PM10, PM2.5.",
    "Increases in NO2, PM10 and PM2.5 significantly decrease the odds of long-term happiness in the UK.",
    "Increases in NO2, PM10 and PM2.5 significantly decrease the odds of short-term mental health in the UK.",
    "Willingness to pay for clean air is significant and increases with level of education.",
    "Empirical willingness-to-pay measurements can serve as benchmarks for:",
    "These measurements can help project a more comprehensive assessment of costs and benefits for climate mitigation policies in the UK.",
    "**Working Paper**"
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