The Estimation of Willingness to Pay and the Influential Factors for Air Quality Improvement in the City of Mashhad

مجله اقتصاد و توسعه کشاورزی

Volume 38, Issue 3 - Serial Number 64, October 2024, Pages 260-243   

Document Type: Research Article

DOI: 10.22067/jead.2024.86525.1247

Authors

S. Kalhori¹; L. Abolhasani^{* 1}; M. Sabouhi²; M. Sarkhosh³

¹Department of Agricultural Economics, Factuly of Agriculture, Ferdowsi University of Mashhad, Mashhad, Iran

²Ferdowsi university of mashhad

³Department of Environmental Health Engineering, Mashhad University of Medical Sciences, Mashhad, Iran

Abstract

Introduction
Given the rapid process of industrialization, expansion of agriculture, increased reliance on fossil fuels, and the intensification of climatic conditions, air quality has rapidly deteriorated in recent years. One of the most important issues and challenges facing the world today is air pollution, particularly PM_2.5 pollution. This problem has evolved into one of the most complex and serious dilemmas affecting the lives of people worldwide. Exposure to high levels of air pollution has negative health implications. The present study aims to measure the willingness to pay of Mashhad city residents for the improvement of PM_2.5 pollution and identify the factors influencing this willingness to pay.
 
Materials and Methods
This study used contingent valuation and the multiple-bound discrete choice model to calculate individuals' willingness to pay. The research focused on the certainty level of "definitely yes" and generated 13 different proposals ranging from 10,000 Toman to 200,000 Toman. The ordered logit regression model was employed to analyze the factors influencing the willingness of Mashhad citizens to pay for air quality improvement. The study collected 343 questionnaires from Mashhad city residents, considering variables such as education level, age, gender, marital status, family size, presence of children, chronic respiratory diseases and individuals' income. The dependent variable was the public's willingness to pay for improving air quality regarding PM2.5.
 
Results and Discussion
The study found that a significant portion of respondents were willing to pay for air quality improvement. About 22.45% were willing to pay less than 10,000 Toman, 60.06% were willing to pay between 45,000 and 58,000 Toman, 5.83% were willing to pay between 95,000 and 120,000 Toman, and 11.66% were willing to pay between 155,000 and 200,000 Toman. The average willingness to pay for PM2.5 pollutant improvement in Mashhad was estimated to be 55,488 Toman. Education, age, respiratory diseases, income, and family size were found to affect willingness to pay.
 
 Conclusion 
Improving air quality and reducing pollution requires costly efforts and collaboration from society. This research examines individuals' willingness to financially contribute to air quality enhancement. Factors influencing their willingness to pay are also studied. Based on the findings, it is recommended that the government and municipal authorities impose taxes and levies on polluting sectors, considering the calculated value of air pollution and its sources. Educational programs tailored to diverse educational backgrounds, along with technology and social media, can raise environmental awareness among youth. Developing cost-effective public transportation systems and providing discounts for low-income individuals can also help reduce pollution. Financial programs and incentives for cleaner resources are another solution for improving air quality.

Keywords

Mashhad; Multiple-bound discrete choice method (MBDC); PM2.5; Willingness to pay

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