This paper finds that a 10-μg/m3 increase in airborne particulate matter [particulate matter smaller than 10 μm (PM10)] reduces life expectancy by 0.64 years (95% confidence interval = 0.21–1.07). This estimate is derived from quasiexperimental variation in PM10 generated by China’s Huai River Policy, which provides free or heavily subsidized coal for indoor heating during the winter to cities north of the Huai River but not to those to the south. The findings are derived from a regression discontinuity design based on distance from the Huai River, and they are robust to using parametric and nonparametric estimation methods, different kernel types and bandwidth sizes, and adjustment for a rich set of demographic and behavioral covariates. Furthermore, the shorter lifespans are almost entirely caused by elevated rates of cardiorespiratory mortality, suggesting that PM10 is the causal factor. The estimates imply that bringing all of China into compliance with its Class I standards for PM10 would save 3.7 billion life-years.

/pdf/evidence-on-the-impact-of-sustained-exposure-to-air-1qcp5wpe98.pdf

Evidence on the impact of sustained exposure to air pollution on life expectancy from China’s Huai River policy

In this article we develop the theoretical properties of the propensity function, which is a generalization of the propensity score of Rosenbaum and Rubin. Methods based on the propensity score have long been used for causal inference in observational studies; they are easy to use and can effectively reduce the bias caused by nonrandom treatment assignment. Although treatment regimes need not be binary in practice, the propensity score methods are generally confined to binary treatment scenarios. Two possible exceptions have been suggested for ordinal and categorical treatments. In this article we develop theory and methods that encompass all of these techniques and widen their applicability by allowing for arbitrary treatment regimes. We illustrate our propensity function methods by applying them to two datasets; we estimate the effect of smoking on medical expenditure and the effect of schooling on wages. We also conduct simulation studies to investigate the performance of our methods.

/pdf/causal-inference-with-general-treatment-regimes-generalizing-57wpz22hzq.pdf

Causal Inference with General Treatment Regimes: Generalizing the Propensity Score

Why farmers continue to use pesticides despite environmental, health and sustainability costs

Environmental protection is now an integral part of public policies, at local, national and global levels. In all instances, the cost and benefits of policies and projects must be carefully weighed using a common monetary measuring rod. Yet, many different categories of benefits and cost must be evaluated, such as health impacts, property damage, ecosystem losses and other welfare effects. Furthermore, many of these benefits or damages occur over the long term, sometimes over several generations, or are irreversible (e.g. global warming, biodiversity losses). How can we evaluate these elements and give them a monetary value? How should we take into account impacts on future generations and of irreversible losses? How to deal with equity and sustainability issues? This book presents an in-depth assessment of the most recent conceptual and methodological developments in this area. It should provide a valuable reference and tool for environmental economists and policy analysts.

Cost-Benefit Analysis and the Environment: Recent Developments

Purpose – Seeks to provide answers to two questions: is willingness to pay (WTP) for organic products influenced by the same set of factors that affect purchasing of conventional foods? Does WTP for organic products vary according to different food categories?Design/methodology/approach – Purchasers were approached during their food shopping in retail chains in Athens in July 2003. Sample inclusion is based on real awareness of the term “organic”. The questionnaire included in its first part a number of criteria that influence consumers when buying food. In the second part respondents were asked to indicate if any food products they buy were organic and to state how much more they were willing to pay. Information from the first part was analysed with factor analysis. With the help of t‐value analysis, it was examined whether there is a statistically significant difference per product category between consumers who are willing to pay and consumers who are unwilling to pay in terms of the factors identified...

Consumers' willingness to pay for organic food: Factors that affect it and variation per organic product type

In this article, we propose a semiparametric smooth coefficient model as a useful yet flexible specification for studying a general regression relationship with varying coefficients. The article proposes a local least squares method with a kernel weight function to estimate the smooth coefficient function. The consistency of the estimator and its asymptotic normality are established. A simple statistic for testing a parametric model versus the semiparametric smooth coefficient model is proposed. An empirical application of the proposed method is presented with an estimation of the production function of the nonmetal mineral industry in China. The empirical findings show that the intermediate production and management expense has played a vital role and is an unbalanced determinant of the labor and capital elasticities of output in production.

https://www.jstor.org/stable/pdfplus/1392126.pdf

Semiparametric Smooth Coefficient Models

Valuing Health Effects of Air Pollution in Developing Countries: The Case of Taiwan

The objective of this paper is to estimate the consumer willingness to pay (WTP) for selected genetically modified (GM) foods in Japan, Norway, Taiwan, and the United States. Our survey results reveal that there are notable differences in the attitude and perception of GM foods across these countries. Consumers are willing to pay substantial premiums for non-GM foods (vegetable oil and salmon) in order to avoid GM counterparts. These premiums may exceed 50% of the discounted prices of GM foods.

Consumer Acceptance and Willingness to Pay for Genetically Modified Vegetable Oil and Salmon: A Multiple-Country Assessment

Willingness to pay (WTP) for reductions in health risk associated with consuming pesticide residues on vegetables are estimated using the contingent valuation method with in-person interviews of married females in Taiwan. Estimated median WTP for 25 per cent, 50 per cent and 90 per cent reductions in the risk of developing cancer from consuming pesticide residues on a popular Taiwanese vegetable, bok choy, are estimated as 46 per cent, 56 per cent and 75 per cent of the current price of bok choy, respectively. WTP is significantly related to the scope or magnitude of the risk reduction, although it varies less than proportionately to the risk increment. WTP is also significantly related to measures of consumer preferences for health.

Consumer willingness to pay for low-pesticide fresh produce in Taiwan

By focusing on two dimensions of the digital divide-computer use and computer knowledge, this study explores four research questions: (1) What are the undergraduates doing with the computers they use at colleges? (2) How do undergraduates perform in regard to computer knowledge and skills? (3) With what is the digital divide among college students correlated? (4) What consequences does the digital divide have for student academic performance? In order to answer these research questions, a national survey was conducted. The survey investigated 3083 first-year college students of 12 4-year universities in Taiwan. A total of 2719 of them completed the questionnaires resulting in a response rate of 88.2%. In this study, the digital divide is measured in terms of computer use, which includes a variety of purposes for using computers and academic-related work as a proportion of total computer hours, and computer knowledge. Multiple regressions and a generalized ordered logit, i.e. a partial proportional odds model, are employed. The main findings include the following: (1) Undergraduates use computers not only for fulfilling their academic requirements and searching for information, but also for entertainment. On average, undergraduates spend about 19h per week using computers, of which 5h are academic-related. (2) Most undergraduates perform at the middle average level in terms of computer knowledge. (3) No significant differences among correlates in relating to demographic and socioeconomic family background were found in predicting the various purposes in using computers. (4) Students who are female, whose fathers and/or whose mothers are from minorities, whose fathers are blue-collar workers or unemployed, who study in the fields of the humanities and social sciences, and who enter private universities are at a disadvantage in terms of computer skills and knowledge. However, female students, students whose mothers were less educated and students who enroll in private universities are more focused computer users in terms of allocating time to academic-related work. (5) Computer knowledge and devotion to using computers for academic-related work have a moderate effect on college student learning, while the various other uses of computers do not. Of the different kinds of computer knowledge, it is the knowledge of software that helps students to learn the most.

Tsu-Tan Fu

Papers

Semiparametric Smooth Coefficient Models

Valuing Health Effects of Air Pollution in Developing Countries: The Case of Taiwan

Consumer Acceptance and Willingness to Pay for Genetically Modified Vegetable Oil and Salmon: A Multiple-Country Assessment

Consumer willingness to pay for low-pesticide fresh produce in Taiwan

The correlates of the digital divide and their impact on college student learning