Abstract
In recent years, environmental consciousness has been gradually emphasized, pushing government to maintain and improve environmental quality. But there is a dispute over the measurement of the cost and benefit of environmental changes due to the fact that there is no market for environmental quality. To overcome this problem, we use the hedonic price method to analyze the benefit from air quality improvement Total Suspended Particulate in Kaohsiung City. By using price data from the system of “Actual Selling Price Property” and other collected information such as of the air quality and the distance of public facilities nearby, we construct a hedonic price function. The function is then used to investigate the benefit of air quality improvement. The result shows that if the authority reduce the concentration level of Total Suspended Particulate by half based on the year 2011 record, the annual benefit from improving air quality are: Zuoying NT$64.28 million; Sanmin 112.26 NT$million; Qianzhen NT$64.80 million, Lingya NT$60.9 million, Qianjin NT$ 10.61million, Gushan NT$ 45.8million.