The Value of Improved Air Quality: A Contingent Valuation Study on Wonji Town (Ethiopia)
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Date
2000-03
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A.A.U
Abstract
The purpose of this study is twofold: (i) To estimate the benefits of reduction in air
pollution in wonji town. (ii) To identify the variables which determine willingness to pay
for air pollution reduction.
The contingent valuation method was used for investigation. The survey is based on a
sample of three hundred thirty two households. The study reveals that most people are
aware of emission problems and willing to pay to reduce it. Censored data (300) was
used to analyses the determinants of WTP, and to estimate benefits.
Both Tobit and ordered probit models were applied to capture the effects of some
variables such as distance from the polluter factory , wealth, income, education, pollution
related diseases, etc. The signs of coefficients, except pollution related diseases, are as
expected. Wealth, education , distance from polluter, interest in environmental problems
and concern for future generations have significant impact on WTP. The estimated
benefit, using frequency distribution, is nearly 29,000 birr per month. On the other hand ,
the benefit, using the mean WTP, is nearly 31,000 birr.
These benefits may help to finance measures which could reduce the pollution level such
as improved quality fuels, operational and maintenance improvement, and pollution
control equipment improvement/installation.
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Contingent Valuation Study, Wonji Town Ethiopia