Private Vehicle Owners’ Willingness to Pay for Outdoor Clean Air in Addis Ababa
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Date
2021-05
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Addis Ababa University
Abstract
Vehicular transport is one of the major sources of air pollution in the transport sector.
Vehicular emission results in to the death of millions of premature deaths. The ambient air
pollution induced by the transport sector causes a serious health problems, recent evidences
focusing on respiratory and cardiovascular effects were associated with exposure to short
term or long term exposure to air pollution. To this effect, this study is mainly intended to
determine WTP of private vehicle owners’ that have a contribution to the problems.
Furthermore, it elaborates the amount there are willing to pay to induce a dedicated fund
in mitigating the problem to improve the quality of air and make livable. The research has
adopted a stated preference method where the value of use and nonuse of natural goods is
determined through CVM. Thus, an open ended pretest survey was conducted to determine
the initial bid. Then, the final survey has adopted a closed ended questionnaire type. The
analysis part was adopted to use a probit and Tobit regression model. Subsequently, the
result shows that level of education has positive sign significant effect, while respondents
number of years lived in Addis Ababa and vehicle service year have negative sign and
significant effect. The research was able to draw Mean Willingness to Pay (MWTP) which
has a value of 17.10 ETB per month and the aggregate WTP has a value of 2,874,294.5 ETB
per year. To this end, this study can serve as an indicator to the planners and policy makers’
effort taken to cut vehicular emission. The study reveal that private vehicle owners were
willing to participate in any action taken to reduce the ambient air pollution emerges from
their car. This study tried to promote the implementation and efficiency of the existing
pollution regulation. If the liability with regard to air pollution comes to a single private
vehicle owners, and policies are derived on the subject, this study can serve as an indicator
and the milestones raised on this study can be taken in to account for further studies. Finally,
this research reveal private vehicle owners were interested to support both the presented
air pollution reduction principles and financial contribution in widening public engagement
in the prevention process
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Keywords
Contingent valuation, Willingness to pay, Property rights