Clean Air Act Revisited: Huge Benefits Unveiled for Households in Southern California
The article presents a new method to measure how much people are willing to pay for improvements in air quality. By using a locational equilibrium model, the researchers estimated households' preferences and how they would adjust to changes in air quality. They found that taking into account these adjustments is crucial for accurately assessing the benefits of cleaner air. The study focused on air quality changes in Southern California from 1990 to 1995, showing that considering general equilibrium effects is important for understanding the true value of environmental improvements.