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 Enrico Moretti
A1 Matthew Neidell
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.