The Value Of Improved Air Quality A Contingent Valuation Study On Wonji Town (ethiopia)

The purpose of this study is twofold: (i) To estimate the benefits of reduction in airrnpollution in wonji town. (ii) To identify the variables which determine willingness to payrnfor air pollution reduction.rnrnThe contingent valuation method was used for investigation. The survey is based on arnsample of three hundred thirty two households. The study reveals that most people arernaware of emission problems and willing to pay to reduce it. Censored data (300) wasrnused to analyses the determinants of WTP, and to estimate benefits.rnrnBoth Tobit and ordered probit models were applied to capture the effects of somernvariables such as distance from the polluter factory , wealth, income, education, pollutionrnrelated diseases, etc. The signs of coefficients, except pollution related diseases, are asrnexpected. Wealth, education , distance from polluter, interest in environmental problemsrnand concern for future generations have significant impact on WTP. The estimatedrnbenefit, using frequency distribution, is nearly 29,000 birr per month. On the other hand ,rnthe benefit, using the mean WTP, is nearly 31,000 birr.rnrnThese benefits may help to finance measures which could reduce the pollution level suchrnas improved quality fuels, operational and maintenance improvement, and pollutionrncontrol equipment improvement/installation.

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