Do Mexicans care about air pollution?

Mexico has many major problems such as corruption, poverty, illiteracy, unemployment, pollution, etc. Regarding pollution, politicians have established some programs trying to improve air quality in Mexico. But they do not know if Mexicans care about air pollution or they prefer that government faces other problems. This paper written by José Iván Rodríguez-Sánchez, answers this question and in fact, we conclude that Mexicans do care about air pollution (measured by Particulate Matter) and they agree to pay to reduce it. This paper follows a residential sorting model to calculate marginal willingness to pay for a reduction in air pollution. Our estimates imply that the household head in Mexico would pay $443.66 to $2,682.92 (in constant 2000 Mexican pesos) or 46.90–283.61 (2000 dollars) for a one-unit reduction in Particulate Matter emissions per year. Therefore, there are benefits to reduce this problem in Mexico and the government and private firms must face this problem since the costs are lower than those benefits.

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Latin American Economic Review aims to be the leading general interest journal on topics relevant to Latin America. The journal welcomes high-quality theoretical and quantitative papers on economic, social and political-economy issues with a regional focus. Articles presenting new data bases or describing structural reforms within a rigorous theoretical framework will also be considered. A few (illustrative) examples of topics that may be of special interest to this journal include: inflation, informal sector, corruption, crime, drug policy, unions, social exclusion, price controls, energy and environmental policy, natural resources, and technology transfer.

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