Economics at your fingertips  

Haze, health, and income: An integrated model for willingness to pay for haze mitigation in Shanghai, China

Xiaoling Ouyang, Wuxu Zhuang and Chuanwang Sun ()

Energy Economics, 2019, vol. 84, issue C

Abstract: Most existing studies indicate that residentsö willingness to pay (WTP) for environmental protection mainly depends on income and the degree of environmental pollution. However, owing to lack of suitable data, less research has focused on why people have higher or lower WTP for environmental protection, and many questions about their reasons remain unanswered. Based on contingent valuation questionnaires in 16 districts of Shanghai, this study investigates the influencing factors of residentsö WTP for haze mitigation. To avoid a multicollinearity problem, we integrate principal component analysis and the probit model to examine the determinants of WTP. Results show that residentsö WTP for haze mitigation ranges from 343.31 to 359.48 USD. The major influencing factors of residentsö WTP include subjective knowledge of haze impacts, understanding of the frequency and severity of haze, and social trust in haze data published by the government. In particular, we find that owing to anti-haze household expenditure on mitigating the effects of haze pollution on health, residents who considered that the areas they lived in were more influenced by haze pollution do not always have higher WTP for haze mitigation. Results of this study have policy implications for haze mitigation regarding the effect of anti-haze household expenditure.

Keywords: Haze mitigation; Anti-haze household expenditure; Principal component analysis; Probit model; Willingness to pay (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.eneco.2019.104535

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-09-21
Handle: RePEc:eee:eneeco:v:84:y:2019:i:c:s0140988319303305