Abstract
By means of a single-bounded, referendum format contingent valuation, this paper estimates willingness to pay (WTP) for improved air quality among residents of Mexico City Metropolitan Area (MCMA). Findings from this paper illustrate heterogeneity in WTP associated with environmental and social attitudes, and family concerns. For instance, WTP is higher than average if respondents state a very high priority to air pollution but smaller than average if respondent’s household contains more adults than the sample median. This contingent valuation exercise provides elements to carry out cost–benefit analysis of environmental policies both recently implemented and currently under discussion in the MCMA context. For instance, a cost–benefit analysis using estimates from this paper suggests benefits from improved air quality surpass the costs of investing in hybrid buses. Usefulness of this study is underscored by pointing out recent evidence suggesting that (1) air pollution in MCMA has larger health impacts than in similar cities located in developed countries, and (2) policies tackling air pollution in MCMA have had no impact on pollution levels.
Highlights
Air pollution remains a pressing issue in megacities located in developing countries
Usefulness of this study is underscored by pointing out recent evidence suggesting that (1) air pollution in Mexico City Metropolitan Area (MCMA) has larger health impacts than in similar cities located in developed countries, and (2) policies tackling air pollution in MCMA have had no impact on pollution levels
Focusing on the results arising from the analysis of the entire sample, the first set of coefficients in Table 5 refers to the key variables in this study—i.e. bid, environmental and social attitudes, and family concerns
Summary
Air pollution remains a pressing issue in megacities located in developing countries. Mexico City Metropolitan Area (MCMA) is an infamous case. Pollution levels in MCMA regularly surpass limits suggested by the World Health Organization (CAI 2013). MCMA has been ranked as the second most congested city in the world during 2014.1 Effects of air pollution on the respiratory system have long been documented in MCMA (e.g. Escamilla-Nunez et al 2008; Romieu et al 2008). Recent epidemiological studies report neuro-inflammation in otherwise healthy children residing in MCMA (Calderon-Garciduenas et al 2008). Air pollution produces larger health impacts in Mexico city than in similar cities located in a developed country (Arceo-Gomez et al 2012)
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