Air pollution: policy and valuation
EEP 101/ECON 125
April 28, 2021
James Sallee (EEP 101/ECON 125) Air Quality April 28, 2021 1 / 18
Recap of Lecture 38
1 Why can go wrong with stated preference methods?
– Potential problems include (1) sampling bias, (2) strategic bias,
(3) framing bias and (4) ill-formed preferences
2 What is referendum voting?
– We can avoid strategic bias by asking for up or down votes via
3 The Exxon Valdez: an example of a contingent valuation
James Sallee (EEP 101/ECON 125) Air Quality April 28, 2021 2 / 18
The main goal of this course is to teach you how to
think like an economist about the environment.
What does it mean to think like an economist about the
environment, and why might that be useful?
We will answer by way of illustration via an important
example: air pollution.
James Sallee (EEP 101/ECON 125) Air Quality April 28, 2021 3 / 18
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