I took my kids to the local arboretum last weekend, Boxerwood Gardens. We had a great time - lots of beautiful flowers, big trees, informative signs, etc. At one point as I was walking up a hill toward an open field, I noticed The Blue Ridge Mountains, only they were sort of gray and barely even visible. It was not a particularly humid day, but the haze was still pretty thick. Like I said, I was having a great day with my family, but the lack of visibility really brought me down.
I thought of all the trucks that ramble up and down I-81 day and night. I thought of all the folks in the Midwest enjoying "cheap" electricity and I thought about how I chose to live in the Central Valley of Virginia, at least in part, because of the incredible scenery, because I love the mountains. Yet, I can't even see the mountains on certain days. Legend has it, that in the early 1900s, you could see the Washington Monument from the highest point in Shenandoah National Park (70 miles). Now, on certain summer days, visibility is less than 2 miles!!!
I figure I am willing to pay (WTP) for better air quality, but who should I pay? Then I think, wait a minute - I already pay!! I choose to live someplace where I earn a lower income than if I lived someplace else. Isn't this at least a reflection of the utility I derive from living in a beautiful place and does it not reflect my WTP to live here and see the mountains?
So, maybe the polluters should pay me? I suppose I would be willing to accept (WTA) some level of compensation for lost visibility. But, who are the polluters? Truck drivers on I-81? The companies for whom they work? Coal burning power plants to the west of the Valley? The customers for whom they provide electricity? It begs a lot of questions - I wonder what Coase would say?