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A multilevel analysis of the determinants of willingness to pay to prevent environmental pollution across countries

Author

Listed:
  • Jean-Louis Combes

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique)

  • Mahamat Hamit-Haggar

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique)

  • Sonia Schwartz

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper discusses the extent to which individual and contextual level factors influence the likelihood of individuals' willingness to pay (WTP) to prevent environmental pollution. A multilevel probit regression framework was set up to explain WTP to prevent environmental pollution. We use data from the World Values Survey (WVS), which contains socio-economic and socio-demographic information, and merged it with country level covariates. Compared to many previous studies, our dataset encompasses a more indepth set of individual level covariates. We find that rich people, individuals with higher education, as well as those who possess post-materialist values are more likely to be concerned about environmental pollution. This study reveals that in developed countries, 90% of country variation in WTP to prevent environmental pollution can be explained by individual characteristics. This portion reduces to 80% in the case of developing countries. An interesting feature in our study is the ability to investigate the effect of contextual factors on individuals' willingness to contribute for the environment. We observe that both democracy and government stability reduce individuals' intention to donate to prevent environmental damage mainly in developed countries.

Suggested Citation

  • Jean-Louis Combes & Mahamat Hamit-Haggar & Sonia Schwartz, 2018. "A multilevel analysis of the determinants of willingness to pay to prevent environmental pollution across countries," Post-Print hal-01870980, HAL.
    • Handle: RePEc:hal:journl:hal-01870980
    DOI: 10.1016/j.soscij.2018.02.001
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    Citations

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    Cited by:

    1. Dev Narayan Sarkar & Kaushik Kundu, 2018. "The overlap spaces of alternative economy and subaltern businesses: a study of emigrant peddlers," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-24, December.
    2. 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.
    3. Bing Yu & Yuying Cai & Laiqun Jin & Bisheng Du, 2018. "Effects on Willingness to Pay for Marine Conservation: Evidence from Zhejiang Province, China," Sustainability, MDPI, vol. 10(7), pages 1-17, July.
    4. Axel Franzen & Sebastian Mader, 2020. "Can Climate Skeptics Be Convinced? The Effect of Nature Videos on Environmental Concern," Sustainability, MDPI, vol. 12(7), pages 1-12, April.

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