GTAP Resources: Resource Display
GTAP Resource #7203 |
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"Valuing Air Pollution's Impact on Labor Productivity in General Equilibrium" by Maniloff, Peter and Andrew Schreiber Abstract This paper assesses the welfare implications of air pollution induced labor productivity improvements in a computable general equilibrium framework. We document that labor market productivity changes associated with a one mu g / m^3 reduction in PM2.5 can have a large welfare impact. Variation in the existing econometric evidence produces a range of possible welfare effects equal to approximately $950-3000 per household per year which is 50-160% of the estimated mortality impacts. Accounting for general equilibrium effects increases the welfare effect by roughly 45% relative to a back of the envelope estimate. Allowing for sector-specific shocks or impacts to leisure preferences have little effect on aggregate results. We also find that the aggregate welfare effect is approximately proportional to the shock size. |
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- Environmental policies - Domestic policy analysis - Labor market issues - Advances in quantitative methods - Dynamic modeling - North America |
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Last Modified: 9/15/2023 2:05:45 PM