Details

Autor(en) / Beteiligte

• Deschênes, Olivier
• Greenstone, Michael
• Shapiro, Joseph S.

Titel

Defensive Investments and the Demand for Air Quality: Evidence from the NOx Budget Program

Ist Teil von

• The American economic review, 2017-10, Vol.107 (10), p.2958-2989

Ort / Verlag

Nashville: American Economic Association

Erscheinungsjahr

2017

Link zum Volltext

Quelle

EBSCOhost Business Source Ultimate

Beschreibungen/Notizen

• The demand for air quality depends on health impacts and defensive investments, but little research assesses the empirical importance of defenses. A rich quasi-experiment suggests that the Nitrogen Oxides (NOₓ) Budget Program (NBP), a cap-and-trade market, decreased NOₓ emissions, ambient ozone concentrations, pharmaceutical expenditures, and mortality rates. The annual reductions in pharmaceutical purchases, a key defensive investment, and mortality are valued at about $800 million and $1.3 billion, respectively, suggesting that defenses are over one-third of willingness-to-pay for reductions in NOₓ emissions. Further, estimates indicate that the NBP's benefits easily exceed its costs and that NOₓ reductions have substantial benefits.