City Quality of Life Dynamics: The Case of Los Angeles Smog
34 Pages Posted: 8 Mar 1998
Date Written: February 1998
The Los Angeles region has the highest smog levels in the nation. In 1976, daily smog levels exceeded extremely high levels (stage 1 at .20 parts per million) on 102 days at at least one Los Angeles area monitoring station. Despite sharp population and vehicle growth, Los Angeles ozone levels have fallen sharply. In 1996, the stage 1 ozone standard was exceeded only on 7 days. This paper uses 1980 and 1990 Los Angeles micro data to study whether this regulation induced pollution reduction has substantially increased this city's quality of life. Hedonic home price regression models and migration models are estimated to determine how compensating differentials for ozone exposure have evolved over time. The incidence of the amenity improvement is also analyzed.
JEL Classification: Q25, R12, R13
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