농업경제연구

Korean Agricultural Economics Association

제목 Reevaluation of Exact Welfare Measures for Environmental Quality Improvement in Quantity-Constrained Regimes
저자 Chung-Gil Kim
발행정보 44권 3호 (2003년 9월) 페이지 93~118
초록 This paper attempts to reexamine the Randall-Stool's (1980) and Hanemann's (1991) analyses related to arguments about the disparity between willingness to pay (WTP) and willingness to accept (WTA) using the hedonic price function of clean air and the CES utility function. The analytical result reinforces the view that knowledge of Marshallian demand for measuring the exact welfare measures can lead to good estimates of economic welfare in the pragmatic approach to measuring environmental quality improvement. In addition, this result provides some support for Randall-Stoll's argument which the WTP and WTA for measuring the environmental quality improvement should not differ greatly unless there are unusual income effect. In particular, sensitivity results using Hanemann's suggested CES utility function show that the size of approximating errors in MS as exact welfare measures is influenced by relative magnitudes of the quantity change, price flexibility of income, proportional change in real income due to the quantity change, as well as elasticity of substitution.
논문파일 농업경제연구-2003(44권제3호)-04.pdf