RT Journal Article SR Electronic T1 Pollution, Health, and Avoidance Behavior JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 154 OP 175 DO 10.3368/jhr.46.1.154 VO 46 IS 1 A1 Moretti, Enrico A1 Neidell, Matthew YR 2011 UL http://jhr.uwpress.org/content/46/1/154.abstract AB A pervasive problem in estimating the costs of pollution is that optimizing individuals may compensate for increases in pollution by reducing their exposure, resulting in estimates that understate the full welfare costs. To account for this issue, measurement error, and environmental confounding, we estimate the health effects of ozone using daily boat traffic at the port of Los Angeles as an instrumental variable for ozone. We estimate that ozone causes at least $44 million in annual costs in Los Angeles from respiratory related hospitalizations alone and that the cost of avoidance behavior is at least $11 million per year.