Willingness to pay to control PM2.5 pollution in Jing-Jin-Ji Region, China

Weixian Wei and Yan Wu

Applied Economics Letters, 2017, vol. 24, issue 11, 753-761

Abstract: This letter aims to study individual willingness to pay (WTP) to mitigate PM2.5 pollution in the Jing-Jin-Ji region by using contingent valuation method. Our survey indicated that residents in this region were highly concerned about PM2.5 pollution control and supported PM2.5 pollution control policies. In this study, a payment card (PC) format is used to elicit residents’ perceived WTP. With a two-part model, we estimate the mean WTP for an 80% reduction of severe PM2.5 polluting days in this region is 602 CNY a year, approximately accounts for 1% of the GDP per capita. This result indicates an important funding source for the government to control PM2.5 pollution in the region. In the econometric analysis, the mean WTP is found to significantly relate with income, expense, age and education level. It decreases with income, age and educational level, but increases with expense, and it is higher for females, people who have children, own cars and apartments but lower for those having larger families. By comparing with relevant researches, this letter indicates a strong and ever-increasing WTP for air pollution control among residents in the Jing-Jin-Ji region, China.

Date: 2017
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Citations: View citations in EconPapers (8)

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DOI: 10.1080/13504851.2016.1226482

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