Valuation of Haze Management and Prevention Using the Contingent Valuation Method with the Sure Independence Screening Algorithm

Guizhi Wang, Yingxi Song, Jibo Chen and Jun Yu
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Guizhi Wang: School of Mathematics and Statistics, Nanjing University of Information Science and Technology, Nanjing 210044, China
Yingxi Song: School of Mathematics and Statistics, Nanjing University of Information Science and Technology, Nanjing 210044, China
Jibo Chen: School of Mathematics and Statistics, Nanjing University of Information Science and Technology, Nanjing 210044, China
Jun Yu: Department of Mathematics and Statistics, University of Vermont, Burlington, VT 05401, USA

Sustainability, 2016, vol. 8, issue 4, 1-11

Abstract: Haze has caused the deterioration of air quality and has ultimately affected the ecological environment. The contingent valuation method (CVM) is an important assessment method that is widely used in ecological economics. The public’s willingness to pay (WTP) for haze management and prevention can be analyzed using dichotomous choices. Here, the method is applied to study the valuation of haze management and prevention. Taking Jiangsu Province as an example, the non-market value is calculated by constructing the binary logistic model from questionnaire data, combined with a data-processing method: the sure independence screening (SIS) algorithm. The conclusions are as follows: (1) The public’s WTP for haze management and prevention is closely related to the monthly income of families and transport modality; (2) According to the CVM, the non-market value for haze management and prevention in Jiangsu is 7.645 billion yuan; (3) By the average estimate method (AEM), this value is 12.529 billion yuan, about 1.64 times the estimate from the CVM. This is because the AEM ignores the correlation among the influence factors and, therefore, overestimates the valuation of the services; (4) The CVM, combined with the SIS algorithm, does a better job in estimating the valuation of the services.

Keywords: contingent valuation method; haze management and prevention; willingness to pay; binary logistic model; average estimate method (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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