Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2009:2: Valuing urban accessibility and air quality in Sweden: A regional welfare analysis

Chuan-Zhong Li () and Gunnar Isacsson ()
Additional contact information
Chuan-Zhong Li: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Gunnar Isacsson: Department of Economics, Dalarna University, VTI, Borlänge

Abstract: This paper is concerned with the implicit values of urban accessibility and air quality in Sweden. Based on the hedonic wage and rent theory, we construct an econometric model to compute such values, and illustrate their implications for regional sustainability analysis. It is shown that for most Swedish cities, welfare has increased from 1986 to 1998 due to improved air quality but the positive effect is partly offset by the deteriorated accessibility in some areas. The results also indicate that the values people place on urban accessibility and air quality vary considerably across regions.

Keywords: hedonic pricing; air quality; urban accessibility; welfare analysis

JEL-codes: Q51; R10

24 pages, March 20, 2009

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