Pollution exposure and willingness to pay for clean air in urban China. 2020

Dong Guo, and Anyi Wang, and Alice Tianbo Zhang
Columbia University, The Earth Institute, 475 Riverside Drive, Suite 525, New York, NY, 10115, USA. Electronic address: guodong@columbia.edu.

Rapid industrialization and urbanization are often accompanied by deteriorating air quality that imposes substantial health and productivity costs on the local population. However, existing studies have generally found low marginal willingness to pay (WTP) for mitigating such damages. To understand the determinants and the extent of WTP for air quality improvements, we collected comprehensive socio-demographic and stated preference information from more than 3000 random respondents in three cities in China. Combining the survey data with air quality data from ground-level monitoring stations, we find that exposure to persistent air pollution is a significant determinant of the extent individuals are willing to pay for cleaner air. On average, urban residents are willing to pay 65 CNY (~10 USD) each year to improve air quality to World Health Organization standards. Males and individuals that are younger and more educated tend to have higher WTP. We also find that individuals with more knowledge of sustainability and who engage in more pro-environmental behaviors are willing to pay more. Compared to existing government monetary incentives to reduce air pollution, the public's total WTP for cleaner air is much higher. Overall, these results highlight the potential welfare gain for policymakers to implement more stringent air quality regulations to reduce pollution.

UI MeSH Term Description Entries
D008297 Male Males
D011795 Surveys and Questionnaires Collections of data obtained from voluntary subjects. The information usually takes the form of answers to questions, or suggestions. Community Survey,Nonrespondent,Questionnaire,Questionnaires,Respondent,Survey,Survey Method,Survey Methods,Surveys,Baseline Survey,Community Surveys,Methodology, Survey,Nonrespondents,Questionnaire Design,Randomized Response Technique,Repeated Rounds of Survey,Respondents,Survey Methodology,Baseline Surveys,Design, Questionnaire,Designs, Questionnaire,Methods, Survey,Questionnaire Designs,Questionnaires and Surveys,Randomized Response Techniques,Response Technique, Randomized,Response Techniques, Randomized,Survey, Baseline,Survey, Community,Surveys, Baseline,Surveys, Community,Techniques, Randomized Response
D002681 China A country spanning from central Asia to the Pacific Ocean. Inner Mongolia,Manchuria,People's Republic of China,Sinkiang,Mainland China
D002947 Cities A large or important municipality of a country, usually a major metropolitan center. Municipalities,Towns
D004787 Environmental Pollution Contamination of the air, bodies of water, or land with substances that are harmful to human health and the environment. Pollution, Environmental,Soil Pollution,Pollution, Soil
D006801 Humans Members of the species Homo sapiens. Homo sapiens,Man (Taxonomy),Human,Man, Modern,Modern Man
D000397 Air Pollution The presence of contaminants or pollutant substances in the air (AIR POLLUTANTS) that interfere with human health or welfare, or produce other harmful environmental effects. The substances may include GASES; PARTICULATE MATTER; or volatile ORGANIC CHEMICALS. Air Quality,Air Pollutions,Pollution, Air
D014507 Urbanization The process whereby a society changes from a rural to an urban way of life. It refers also to the gradual increase in the proportion of people living in urban areas. Central City,Central Cities,Cities, Central,City, Central,Urbanizations

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