FACTORS THAT DETERMINE THE STATED WILLINGNESS TO PAY FOR AIR POLLUTION: A CASE OF BOPHELONG TOWNSHIP

Year 2014, Volume: 6 Issue: 2, 1 - 11, 01.12.2014

Ismael Maloma Mmapula Brendah Sekatane

Abstract

The aim of this paper is to quantify the willingness to pay for improved air-quality
in a typical low-income settlement in South Africa by making use of the
contingent valuation method (CVM). Direct valuation methods or stated
preferences methods such as CVM are used to value goods that do not have a
market value i.e. price-quantity data does not exist for such goods. The mean
WTP to reduce air pollution in Bophelong is approximately R132 per annum. The
econometric analysis found that most parameters had their expected sign. WTP
was found to be positively correlated with employment status and income. Males
were however, found to be less likely to have a positive WTP than their female
counterparts. Household size was also found to be negatively correlated with
WTP.

Keywords

Pollution, Willingness to pay, Bophelong

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