Air quality improvement estimation and assessment using contingent valuation method, a case study in Beijing

Area of Science:

• Environmental Economics
• Environmental Policy
• Urban Planning

Background:

• Air quality is a significant concern in urban areas like Beijing.
• Understanding public perception and economic valuation of environmental improvements is crucial for policy development.

Purpose of the Study:

• To estimate and assess residents' willingness to pay (WTP) for improving air quality in Beijing using the Contingent Valuation Method (CVM).
• To identify socio-economic factors influencing WTP for environmental amenities.

Main Methods:

• Contingent Valuation Method (CVM) survey administered to Beijing residents.
• Statistical analysis to determine mean WTP and influencing socio-economic variables.

Main Results:

• Mean WTP was 143 CNY per household annually for a 50% reduction in air pollutants, totaling 336 million CNY.
• WTP increased with income and education, and decreased with household size and age.
• Residents in urban districts showed higher WTP than those in suburban districts.

Conclusions:

• The CVM is a viable tool for measuring the economic value of environmental quality improvements in China.
• Policy recommendations for academics and policymakers regarding environmental valuation and air quality improvement strategies.
• Household income's impact on WTP highlights the link between economic development and environmental concern in China.