AN ECONOMIC-ANALYSIS OF LOCALIZED POLLUTION - RENDERING EMISSIONS IN A RESIDENTIAL SETTING

The contingent value method is employed to estimate economic damages t o households resulting from rendering plant emissions in a small town. Household willingness to accept (WTA) and willingness to pay (WTP) ar e estimated individually and in aggregate. The influence of household characteristics on WTP and WTA is examined via regression models. The perception of health risk is an important determinant of household val uation, while income appears insignificant. Both WTA and WTP results i ndicate that a potential Pareto-improvement is possible with the incor poration of current abatement technology.