Assessment of the Value of Air Quality Improvement in Tehran
Mohamad Hadian, Mahya Razimoghadam, Ali Abutorabi
Abstract
Mohamad Hadian, Mahya Razimoghadam, Ali Abutorabi
Abstract
Air pollution in Tehran, the capital city of Iran, has led to poor air quality, with consequences for the health of residents. This study uses a contingent valuation method to estimate the willingness to pay of Tehran’s residents for air quality improvement. Open-ended and stochastic payment card approaches were used to determine the willingness to pay of the sample. The mean individual willingness to pay for a specified air quality improvement was approximately US $6.40 per month, and the variance of the willingness to pay was approximately U.S. $4, as estimated using the SPC approach. Open-ended questions revealed that the mean individual willingness to pay was approximately U.S. $4 per month. Significant positive effects of income, use of public transportation, marriage, job and health status on the mean willingness to pay were observed. Although most respondents believed that air quality improvement is the government’s responsibility, they are willing to bear the cost as a supplement to achieve better air quality.
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Air pollution in Tehran, the capital city of Iran, has led to poor air quality, with consequences for the health of residents. This study uses a contingent valuation method to estimate the willingness to pay of Tehran’s residents for air quality improvement. Open-ended and stochastic payment card approaches were used to determine the willingness to pay of the sample. The mean individual willingness to pay for a specified air quality improvement was approximately US $6.40 per month, and the variance of the willingness to pay was approximately U.S. $4, as estimated using the SPC approach. Open-ended questions revealed that the mean individual willingness to pay was approximately U.S. $4 per month. Significant positive effects of income, use of public transportation, marriage, job and health status on the mean willingness to pay were observed. Although most respondents believed that air quality improvement is the government’s responsibility, they are willing to bear the cost as a supplement to achieve better air quality.
Key concepts: Willingness to pay, Contingent valuation, Air quality index, Payment, Valuation (finance), Payment card, Sample (material), Actuarial science