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<p>This paper aims to study individual preferences towards ambient air quality improvements in India, through the willingness to pay (WTP) measure. Contingent valuation method is employed to elicit individual WTP for air quality improvements via closed-end double bound questioning technique. Bivariate probit model is estimated based on the data coming from 539 in-person interviews to find key determinants of WTP. Estimation results suggest that place of residence, education, consciousness regarding air pollution, and household income are the key determinants of individual WTP for air quality improvements. Random probit model estimated based on the same data finds the presence of shifting and anchoring anomalies, leading towards bias in the mean WTP estimation from the Bivariate probit model. After correcting those anomalies, the estimated mean WTP is ₹255.69 (or $3.09) per month. This is the first study estimating the bias-corrected WTP for air quality enhancements, covering a vast region of India.</p>

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Are Indians Willing to Pay for Air Quality? Findings from a Contingent Valuation Study

  • 期刊论文

  • 发表日期：

    2026年5月2日

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  • Debarun Sengupta,
  • Deep Mukherjee,
  • Sarani Saha

摘要

This paper aims to study individual preferences towards ambient air quality improvements in India, through the willingness to pay (WTP) measure. Contingent valuation method is employed to elicit individual WTP for air quality improvements via closed-end double bound questioning technique. Bivariate probit model is estimated based on the data coming from 539 in-person interviews to find key determinants of WTP. Estimation results suggest that place of residence, education, consciousness regarding air pollution, and household income are the key determinants of individual WTP for air quality improvements. Random probit model estimated based on the same data finds the presence of shifting and anchoring anomalies, leading towards bias in the mean WTP estimation from the Bivariate probit model. After correcting those anomalies, the estimated mean WTP is ₹255.69 (or $3.09) per month. This is the first study estimating the bias-corrected WTP for air quality enhancements, covering a vast region of India.