@TechReport{iza:izadps:dp7557,
            	author={Deschenes, Olivier and Greenstone, Michael and Shapiro, Joseph S.},
            	title={Defensive Investments and the Demand for Air Quality: Evidence from the NOx Budget Program and Ozone Reductions},
            	year={2013},
	month={Aug},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={7557},
            	url={https://www.iza.org/publications/dp7557},
	abstract={Demand for air quality depends on health impacts and defensive investments that improve health, but little research assesses the empirical importance of defenses. We study an important cap-and-trade market, which dramatically reduced NOx emissions, a key ingredient in ozone formation. A rich quasi-experiment reveals that it decreased summertime ozone, pharmaceutical expenditures, and mortality rates. Reductions in pharmaceutical purchases and mortality are each valued at $900 million annually, suggesting that defensive investments are a substantial portion of willingness-to-pay. We cautiously conclude that ozone reductions are the primary channel for these effects, implying that ozone's costs are larger than previously understood.},
	keywords={willingness to pay for air quality;cap and trade;ozone;pharmaceuticals;mortality;compensatory behavior;human health},
            }