Author(s)

M. Ghorbani, S. Kulshreshtha & A. Firozzarea

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. Keywords: air pollution, choice modeling approach, nested logit model, household welfare, Iran. 1 Introduction Ever since the start of the Industrial Revolution, economic development and environment have been at odds with each other. According to the WCED [1], current environmental trends, if continued, will radically alter the planet and threaten the lives of many species upon it. As awareness of the danger has grown, environmental protection has been increasingly recognized as a principle concern (Gurluk [2]). One alarming environmental trend in Iran is an increase in air pollution in major cities and the surrounding countryside. This has led to an increased public

Keywords

air pollution, choice modeling approach, nested logit model, household welfare, Iran