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

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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