Economic Valuation of Individuals’ Preferences for Air Quality Improvement in Urban Areas of Bangladesh

Abstract

Bangladesh is among the most polluted countries in terms of air quality, and prolonged exposure to high pollution levels has serious consequences for public health. This research aims to evaluate respondents’ willingness to pay (WTP) for improved air quality via the discrete choice experiment (DCE) technique. The study employs a multinomial logistic regression model to capture the extent of WTP effectively. To carry out the study, a systematic sampling survey was conducted among households (n = 260) in Dhaka and Narayanganj, two of the most polluted cities in Bangladesh. The findings revealed that more than 80% of the respondents were willing to pay for improved air quality. The odds ratios from the model indicate that individuals with higher education, better knowledge of the impacts of air pollution, and those who have experienced airborne diseases are more likely to pay for improved air quality than those without higher education, those with poor knowledge of the impacts of air pollution, and those who have not suffered from airborne diseases over the past year. This study also proposes policy measures to mitigate the significant negative externalities of air pollution on human health.