טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentMenashes Natalia
SubjectEconomic Evaluation of Health Damages from Motor Vehicle
Emissions in the Tel-Aviv Metropolitan Region
DepartmentDepartment of Industrial Engineering and Management
Supervisors Professor Mordechai Shechter
Dr. Benjamin Raiser


Abstract

This research project is part of a larger interdisciplinary research project aimed at developing a methodology for assessing alternative transportation systems for a metropolitan region, with air pollution control being the prime driver. 

Two economic valuation methods where employed to this end: Cost of Illness (COI) and Contingent Valuation Method (CVM). 

The project focused upon one of the more sensitive population groups - school children. An epidemiological and economic questionnaire was distributed to families of school children.

The two main hipotheses we wanted to examine in the project where:

Willingness to Pay for public good, i.e. clean air, of parents whose children suffer from transport system emissions is higher than for parents of those children who do not suffer from transport system emissions;

A WTP amount is higher than COI amount as it is in most developed countries.

As we were conducting the project we became convinced that both hypotheses are true.  The average willingness of ill children’s parents to pay for clean air was 209 N.I.S. and the average willingness of healthy children’s parents was 184 N.I.S.  

According to the COI method, the annual economic losses due to health damages, associated with motor vehicle pollution in the Tel-Aviv metropolitan region amount to $ 1.022 million. 

The average WTP was multiplied by the amount of children in the project area. This method yielded a value of $ 2.446 million.

The number which is of interest to us in this project is the WTP/COI ratio. In our case it equals WTP/COI=2.446/1.022=2.39.