[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i3p2176-d1045515.html
   My bibliography  Save this article

Willingness to Pay for Environmental Quality Improvement Programs and Its Determinants: Empirical Analysis in Western Nepal

Author

Listed:
  • Uttam Paudel

    (Central Department of Economics, Tribhuvan University, Kathmandu 44613, Nepal)

  • Shiva Raj Adhikari

    (Central Department of Economics, Tribhuvan University, Kathmandu 44613, Nepal)

  • Krishna Prasad Pant

    (School of Arts, Kathmandu University, Lalitpur 44700, Nepal)

Abstract
Environmental conditions in western Nepal are experiencing a possible threat to economic losses and sustainability, especially due to decreased productivity and increased health risks. This research investigates the maximum willingness to pay (WTP) of the local community for environmental quality improvement programs by using the contingent valuation technique. It also explores socio-economic and behavioral determinants that influence the maximum WTP for environmental quality improvement. A cross-sectional analytical design is employed using primary data obtained through in-depth face-to-face interviews with people in the community, interviews with key informants, focus group discussions and direct observations. Of the total of 420 households sampled, 72% were willing to pay for the environmental improvement program. The average WTP of households per annum for environmental protection at the community level is given as Nepalese rupees (NPR) 1909 (confidence interval—CI: 1796–2022). Environmental factors (prolonged drought, sporadic rains and drying sprout), socio-economic factors (family size, occupation, regular saving habits in microfinance, distance to the nearest health facility, health insurance enrollment, owning a home and owning arable land) and behavioral factors (cleanliness of the toilet) are the major factors influencing the household’s WTP decision. The findings of this study provide an important guideline and basis for the implementation of cost sharing in environmental quality improvement programs among the community, governments and other stakeholders in this sector.

Suggested Citation

  • Uttam Paudel & Shiva Raj Adhikari & Krishna Prasad Pant, 2023. "Willingness to Pay for Environmental Quality Improvement Programs and Its Determinants: Empirical Analysis in Western Nepal," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2176-:d:1045515
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/3/2176/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/3/2176/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Loomis, John B., 1990. "Comparative reliability of the dichotomous choice and open-ended contingent valuation techniques," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 78-85, January.
    2. Kai Xiong & Fanbin Kong & Ning Zhang & Ni Lei & Chuanwang Sun, 2018. "Analysis of the Factors Influencing Willingness to Pay and Payout Level for Ecological Environment Improvement of the Ganjiang River Basin," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    3. Burchardi, Konrad B. & de Quidt, Jonathan & Gulesci, Selim & Lerva, Benedetta & Tripodi, Stefano, 2021. "Testing willingness to pay elicitation mechanisms in the field: Evidence from Uganda," Journal of Development Economics, Elsevier, vol. 152(C).
    4. Seema Jayachandran, 2022. "How Economic Development Influences the Environment," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 229-252, August.
    5. Israel Debra & Levinson Arik, 2004. "Willingness to Pay for Environmental Quality: Testable Empirical Implications of the Growth and Environment Literature," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-29, February.
    6. Alberini, Anna & Chiabai, Aline, 2007. "Urban environmental health and sensitive populations: How much are the Italians willing to pay to reduce their risks?," Regional Science and Urban Economics, Elsevier, vol. 37(2), pages 239-258, March.
    7. Anil Markandya & Aline Chiabai, 2009. "Valuing Climate Change Impacts on Human Health: Empirical Evidence from the Literature," IJERPH, MDPI, vol. 6(2), pages 1-28, February.
    8. Wanki Moon & Wojciech J. Florkowski & Bernhard Brückner & Ilona Schonhof, 2002. "Willingness to Pay for Environmental Practices: Implications for Eco-Labeling," Land Economics, University of Wisconsin Press, vol. 78(1), pages 88-102.
    9. Axel Franzen & Dominikus Vogl, 2013. "Acquiescence and the Willingness to Pay for Environmental Protection: A Comparison of the ISSP, WVS, and EVS," Social Science Quarterly, Southwestern Social Science Association, vol. 94(3), pages 637-659, September.
    10. Rong Liu & Xiaojun Liu & Bingbing Pan & Hui Zhu & Zhaokang Yuan & Yuanan Lu, 2018. "Willingness to Pay for Improved Air Quality and Influencing Factors among Manufacturing Workers in Nanchang, China," Sustainability, MDPI, vol. 10(5), pages 1-11, May.
    11. Mandy Ryan & Verity Watson, 2009. "Comparing welfare estimates from payment card contingent valuation and discrete choice experiments," Health Economics, John Wiley & Sons, Ltd., vol. 18(4), pages 389-401, April.
    12. Ben Yishay, Ariel & Fraker, Andrew & Guiteras, Raymond & Palloni, Giordano & Shah, Neil Buddy & Shirrell, Stuart & Wang, Paul, 2017. "Microcredit and willingness to pay for environmental quality: Evidence from a randomized-controlled trial of finance for sanitation in rural Cambodia," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 121-140.
    13. Amjad Ali & Marc Audi, 2016. "The Impact of Income Inequality, Environmental Degradation and Globalization on Life Expectancy in Pakistan: An Empirical Analysis," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 4(4), pages 182-193, April.
    14. Rodgers Makwinja & Ishmael Bobby Mphangwe Kosamu & Chikumbusko Chiziwa Kaonga, 2019. "Determinants and Values of Willingness to Pay for Water Quality Improvement: Insights from Chia Lagoon, Malawi," Sustainability, MDPI, vol. 11(17), pages 1-26, August.
    15. Bulte, Erwin & Gerking, Shelby & List, John A. & de Zeeuw, Aart, 2005. "The effect of varying the causes of environmental problems on stated WTP values: evidence from a field study," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 330-342, March.
    16. Kassie, Girma T. & Abdulai, Awudu & Greene, William H. & Shiferaw, Bekele & Abate, Tsedeke & Tarekegne, Amsal & Sutcliffe, Chloe, 2017. "Modeling Preference and Willingness to Pay for Drought Tolerance (DT) in Maize in Rural Zimbabwe," World Development, Elsevier, vol. 94(C), pages 465-477.
    17. Ling-Yun He & Hong-Zhen Zhang, 2021. "Spillover or crowding out? The effects of environmental regulation on residents’ willingness to pay for environmental protection," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 105(1), pages 611-630, January.
    18. Pakhtigian, Emily L. & Jeuland, Marc, 2019. "Valuing the Environmental Costs of Local Development: Evidence From Households in Western Nepal," Ecological Economics, Elsevier, vol. 158(C), pages 158-167.
    19. Loomis, John & Kent, Paula & Strange, Liz & Fausch, Kurt & Covich, Alan, 2000. "Measuring the total economic value of restoring ecosystem services in an impaired river basin: results from a contingent valuation survey," Ecological Economics, Elsevier, vol. 33(1), pages 103-117, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gladys Chigamba & Moses Limuwa & Emmanuel Kaunda, 2021. "Does Paying for Aquatic Resources Matter? A Case of an African Riverine Ecosystem," Sustainability, MDPI, vol. 13(8), pages 1-13, April.
    2. Cicatiello, Lorenzo & Ercolano, Salvatore & Gaeta, Giuseppe Lucio & Pinto, Mauro, 2020. "Willingness to pay for environmental protection and the importance of pollutant industries in the regional economy. Evidence from Italy," Ecological Economics, Elsevier, vol. 177(C).
    3. Rodgers Makwinja & Ishmael Bobby Mphangwe Kosamu & Chikumbusko Chiziwa Kaonga, 2019. "Determinants and Values of Willingness to Pay for Water Quality Improvement: Insights from Chia Lagoon, Malawi," Sustainability, MDPI, vol. 11(17), pages 1-26, August.
    4. Anne Wambui Mumbi & Tsunemi Watanabe, 2021. "Willingness to Pay and Participate in Improved Water Quality by Lay People and Factory Workers: A Case Study of River Sosiani, Eldoret Municipality, Kenya," Sustainability, MDPI, vol. 13(4), pages 1-30, February.
    5. Waranan Tantiwat & Christopher Gan & Wei Yang, 2021. "The Estimation of the Willingness to Pay for Air-Quality Improvement in Thailand," Sustainability, MDPI, vol. 13(21), pages 1-23, November.
    6. García-Valiñas, María A. & Macintyre, Alison & Torgler, Benno, 2012. "Volunteering, pro-environmental attitudes and norms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 455-467.
    7. Jack, B. Kelsey & McDermott, Kathryn & Sautmann, Anja, 2022. "Multiple price lists for willingness to pay elicitation," Journal of Development Economics, Elsevier, vol. 159(C).
    8. Osiemo, Jamleck & Sibiko, Kenneth Waluse & Ng'ang'a, Stanley Karanja & Notenbaert, An M.O., 2024. "Are dairy farmers willing to pay for improved forage varieties? Experimental evidence from Kenya," Food Policy, Elsevier, vol. 124(C).
    9. repec:ipg:wpaper:21 is not listed on IDEAS
    10. Ingmar Schumacher, 2013. "How beliefs influence prevention expenditure," Working Papers 2013-21, Department of Research, Ipag Business School.
    11. Jonathan Darkwah Baffoe & Takeshi Mizunoya & Helmut Yabar, 2021. "Determinants of Rice Farmers’ Willingness to Pay for Conservation and Sustainable Use of Swampy Wetlands in Ghana’s Northern and Ashanti Regions," Agriculture, MDPI, vol. 11(6), pages 1-18, May.
    12. Natalia Melgar & Máximo Rossi, 2012. "Involvement in environmental causes, does the joint effect between subjective income and the performance of the country matter?," Revista de Economía del Rosario, Universidad del Rosario, June.
    13. Chen, Xuqi & Gao, Zhifeng & Swisher, Marilyn & House, Lisa & Zhao, Xin, 2018. "Eco-labeling in the Fresh Produce Market: Not All Environmentally Friendly Labels Are Equally Valued," Ecological Economics, Elsevier, vol. 154(C), pages 201-210.
    14. repec:ipg:wpaper:22 is not listed on IDEAS
    15. Halkos, George, 2012. "The use of contingent valuation in assessing marine and coastal ecosystems’ water quality: A review," MPRA Paper 42183, University Library of Munich, Germany.
    16. Torgler, Benno & Garcia-Valinas, Maria A. & Macintyre, Alison, 2008. "Justifiability of Littering: An Empirical Investigation," Natural Resources Management Working Papers 42147, Fondazione Eni Enrico Mattei (FEEM).
    17. Ling-Yun He & Hong-Zhen Zhang, 2021. "Spillover or crowding out? The effects of environmental regulation on residents’ willingness to pay for environmental protection," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 105(1), pages 611-630, January.
    18. Ojea, Elena & Loureiro, Maria L., 2011. "Identifying the scope effect on a meta-analysis of biodiversity valuation studies," Resource and Energy Economics, Elsevier, vol. 33(3), pages 706-724, September.
    19. repec:ipg:wpaper:23 is not listed on IDEAS
    20. Zapata, Samuel D. & Benavides, Holger M. & Carpio, Carlos E. & Willis, David B., 2009. "The Economic Value of Basin Protection to Improve the Quality and Reliability of Potable Water Supply: Some Evidence from Ecuador," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46773, Southern Agricultural Economics Association.
    21. Udalov, Vladimir & Welfens, Paul J. J., 2017. "Digital and Competing Information Sources: Impact on Environmental Concern and Prospects for Cooperation," IZA Discussion Papers 10684, Institute of Labor Economics (IZA).
    22. Benno Torgler & Maria A. Garcia-Valinas & Alison Macintyre, 2012. "Justifiability of Littering: An Empirical Investigation," Environmental Values, White Horse Press, vol. 21(2), pages 209-231, May.
    23. Mondéjar Jiménez, José & Vargas Vargas, Manuel, 2018. "Modelos de comportamiento ambiental en economía ecológica: Una revisión bibliográfica/Models of Environmental Behavior in Ecological Economics: A Literature Review," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 36, pages 309-316, Enero.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2176-:d:1045515. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.