Impact of Capital Endowment and Environmental Literacy on Farmers’ Willingness to Pay and Level of Payment for Domestic Waste Management

Dandan Fan and Lanzhen Tong ()
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Dandan Fan: School of Economics and Management, Shanghai Ocean University, Shanghai 201306, China
Lanzhen Tong: School of Economics and Management, Shanghai Ocean University, Shanghai 201306, China

Sustainability, 2025, vol. 17, issue 12, 1-21

Abstract: China’s rural rejuvenation rationale reveals that domestic waste management (DWM), as a gateway to habitat enhancement, is a critical policy pathway for achieving sustainable rural development. This paper analyzes the influence of capital endowment (CE) and environmental literacy (EL) on farmers’ willingness to pay (WTP) for DWM through a binary logistic model, focusing on the Yangtze River Delta region, with 571 farmers contributing validated responses. It also conducts a more in-depth exploration of the regulatory role of EL and the influence of CE on WTP for DWM. The findings are as follows: (1) CE and sub-dimensions of economic capital and psychological capital yield a substantial positive effect on WTP for DWM. (2) CE and sub-dimensions of economic capital, human capital, and psychological capital yield a substantial positive effect on LOP for DWM. (3) EL and sub-dimensions of ER, EP, and EKS exert a notably positive influence on WTP and LOP for DWM. (4) EL functions as a moderator in the effect of CE on WTP for DWM. Based on this, this paper puts forward some policy suggestions to improve farmers’ WTP for DWM from two aspects: optimize the structure of farmers’ capital endowment and foster a positive climate for the entire society to safeguard the environment and strengthen the environmental literacy education system.

Keywords: capital endowment; environmental literacy; domestic waste management; willingness to pay; level of payment (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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