The Value of Air Quality and Crime in Chile: A Hedonic Wage Approach

Peer Reviewed
4 February 2011


We estimate the implicit prices of the crime rate and airborne pollution in Chile, using spatially compensating price differentials in the housing and labor markets. We evaluate empirically the impact of different estimation strategies for the wage and rent equations, on the economic value of these two amenities. The results show that increments in the crime rate or in air pollution have a negative impact on welfare and that the estimated welfare measures and their variances are sensitive to selection bias, endogenous amenities and clustering effects. In contrast, the welfare measures do not seem to be very sensitive to the simultaneity bias.


Files and links

Sustainable Development Goals
Publication reference
LAVÍN, F. V., DRESDNER, J., & AGUILAR, R. (2011). The value of air quality and crime in Chile: a hedonic wage approach. Environment and Development Economics, 16(3), 329–355. doi:10.1017/s1355770x10000483

Request a publication

Due to Copyright we cannot publish this article but you are very welcome to request a copy from the author. Please just fill in the information beneath.

Authors I want to contact
Publication | 4 February 2011