Uploaded by Yueqi Luo

Assignment 3

Assignment 3
Yueqi Luo 301441417
Canrui Luo 301313667
Puneet Puneet 301417048
Question 1
Question 2
The reason that an environmental economist could be interested in estimate of
“a” could be: This number has correlated with the buyers’ own preference when they
are considering the house’s utility for themselves, it is di erent between every single
person but all are important as a element that could a ect the house prices.
Assignment 3
Question 3
1. Once the policy has started, rms at Vancouver will choose to move to
Toronto with no migrate costs. Some of workers would also move to Toronto since
they will lost their job if don’t.
2. First, the demand of house in Vancouver will rise, which could lead its price
increase. Same with Toronto, since lots of workers are moving in, the demand will
also increase. The question is, rich people will mitigate to Vancouver because they
have higher WTP on low pollution, but both old and new workers in Toronto cannot
a ord expensive houses. Which means Vancouver’s house price will be higher than