A choice experiment approach to the valuation of air pollution in Mashhad, Iran

Abstract

This study describes the results of a survey carried out in Mashhad, Iran. The survey was designed using choice-modeling techniques and intended to discover what valuation Mashhad residents placed on air pollution and the abatement of air pollution. The survey results were analyzed using a nested logit (NL) model. This analysis then allowed a consideration of the improvements in household welfare that might be expected under different scenarios of air pollution control. Researchers sampled two populations: inhabitants of areas with high air pollution and inhabitants of areas of moderate pollution. The results indicated that the inhabitants of the areas suffering the worst air pollution had the highest willingness to pay (WTP) for a reduction in pollution.