Comparison of Willingness To Pay (WTP) for an Improvement in Air Quality between Users and Nonusers of Firewood in the City of Talca (Chile)

Arcadio Cerda (), Leidy Garcia, Alejandra Bahamondez Montecinos and Viviana Plobete Castro

Lecturas de Economía, 2010, issue 72, 195-212

Abstract: The objective of this study is to analyze the difference in the willingness to pay (WTP) for an improvement in air quality between users and nonusers of firewood at the locality of Florida in Talca (Chile). This analysis applied a contingent valuation approach, with a doubled-bound dichotomous choice format. By creating a certifying institution of dry firewood and assuming a linear and a logistic distribution function, this method calculates the WTP of an improvement in local air quality. The obtained value suggests the feasibility of financing the certifying institution’s operation costs via an environmental municipal fee. Additionally, the findings imply that Florida’s inhabitants using firewood are willing to pay a smaller amount than those who are not.

Keywords: willingness to pay; air pollution costs; contingent valuation (search for similar items in EconPapers)
JEL-codes: C19 Q51 Q52 Q53 (search for similar items in EconPapers)
Date: 2010
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