Economic Loss Assessment Of Air Pollution In China Based On The Hedonic Price Model

The rapid economic development has brought about serious air pollution.The air pollution problem led by"smog"has seriously affected people’s daily lives and hindered the economic development of society.Although the country’s strong rectification has played a certain role,some pollutants have not yet reached the standard.In order to further alleviate the air pollution situation in China,we first need to measure the governance effect of previous policies.One of the important indicators to measure the effect of policy governance is the economic benefit of air pollution improvement.To calculate economic benefits,we first need to obtain the pricing of air pollution,but air quality is a non-market item and cannot be traded on the market,so there is no market price,so the article will obtain the pricing of air pollution through empirical measurement modeling,and further calculate the changes in air pollution One unit of economic benefits and economic losses caused by air pollution.Through literature research,it has been found that in the previous studies evaluating the economic loss of air pollution,the research based on the real estate characteristic price model is more applicable to the current situation in China than the research based on the health effect based on the exposure-response relationship.It can directly assess the non-market The monetized value of the item.The real estate characteristic price model believes that houses are heterogeneous commodities,which are spatially fixed.Consumers’choices about houses interact with all aspects of life.Therefore,house prices contain consumers’hidden characteristics of housing characteristics in many aspects of life.Inclusive pricing.Through the real estate characteristic price model,using non-market items as the housing characteristic variable,the influence of a unit of non-market items on the housing price is obtained.This coefficient is very close to the real price of non-market items in consumers’minds.The price model is used to obtain the marginal price of air pollution,and then the total economic loss caused by air pollution in China is calculated on this basis.The purpose of this study is to evaluate the economic loss of air pollution in China,and to provide a certain reference to the formulators and implementers of air pollution policies through actual values.The article uses air pollution as a characteristic variable of local houses,and analyzes the impact of air pollution on housing prices to obtain consumers’implicit pricing for air pollution-the price of air pollution per unit,that is,consumers are willing to reduce one unit of air Pollution willingness to pay（MWTP）.Based on the obtained marginal willingness to pay,the total economic loss caused by atmospheric pollution is then measured.The indicators analyzed in this article include the Air Quality Index（AQI）and six air pollutants(SO₂,NO₂,CO,O₃,PM₁₀,PM_2.5),and the time range is from February 2013 to July 2018 in China.In the empirical part,the rational expectation method is used to identify missing errors in the model,so that the model can obtain a more accurate estimate,and based on the obtained marginal price of air pollution,calculate the price that consumers are willing to pay to reduce one unit of air pollution（MWTP）On this basis,the total economic loss caused by air pollution in China is calculated every year.The article finally came to the following main conclusions:（1）In terms of model identification,not controlling missing variables that do not change with time greatly affects the accuracy of the estimated value.The article uses the rational expectation method to control the missing variables in the model that do not change with time.By comparing the results of the benchmark model（ordinary least squares and fixed effect model）,it is found that after considering the missing variables that change with time,the results change Big.（2）Consumers’willingness to pay for improving the concentration of O₃and SO₂is not high.Among the remaining pollutants,residents have the highest willingness to pay for reducing NO2 and the lowest willingness to pay for reducing CO concentration.The specific consumers’willingness to pay for reducing the marginal pollutants are AQI（60.59 yuan/m²）,NO₂（341.11 yuan/m²）,CO（4.79yuan/m²）,PM₁₀（56.95 yuan/m²）,PM_2.5（65.59 yuan/m²）（3）Through the calculation of economic loss,it is found that the economic loss caused by air pollution has decreased year by year after treatment,and the government’s governance effect is significant;the economic loss of PM10(PM_2.5)that did not meet the air quality standard in 2018 was 5337.54（6676.47）100 million yuan,accounting for about 0.60%（0.74%）of GDP in that year.In addition to PM₁₀and PM_2.5,the concentration of other common pollutants is within the standard.The economic loss mainly comes from the excessive concentration of PM₁₀and PM_2.5in the air.The management of"smog"is still the key to improving the current air quality.