Factors that determine the stated willingness to pay for air pollution: A case of Bophelong township

• Main Authors: Ismael Maloma, Mmapula Brendah Sekatane
• Format: Article
• Language: English
• Published: Social Sciences Research Society 2014-07-01
• Series: International Journal of Social Sciences and Humanity Studies
• Online Access: http://www.sobiad.org/ejournals/journal_IJSS/arhieves/IJSS-2014_2/Ismael_Maloma.pdf

The aim of this paper is to quantify the willingness to pay for improved air-qualityin a typical low-income settlement in South Africaby making use of thecontingent valuation method (CVM). Direct valuationmethods or statedpreferences methods such as CVM are used to value goods that do not have amarket value i.e. price-quantity data does not exist for such goods. The meanWTP to reduce air pollution in Bophelong is approximately R132 per annum. Theeconometric analysis found that most parameters hadtheir expected sign. WTPwas found to be positively correlated with employment status and income. Maleswere however, found to be less likely to have a positive WTP than their femalecounterparts. Household size was also found to be negatively correlated withWTP.