Can Markets Value Air Quality? A Meta-analysis of Hedonic Property Value Models.

This paper reports the results of a statistical summary of estimates of the marginal willingness to pay for reducing particulate matter from hedonic property value models developed between 1967 and 1988. Results from ordinary least squares and minimum absolute deviation estimators consider the effects of market conditions and the implementation procedures for hedonic models. The interquartile range for these estimated marginal values (measured as a change in asset prices) lies between zero and $98.52 (in 1982-84 dollars) for a one-unit reduction in total suspended particulates (in micrograms per cubic meter). Copyright 1995 by University of Chicago Press.