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Air pollution and willingness to pay for health risk reductions in Egypt: A contingent valuation survey of Greater Cairo and Alexandria households

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  • Ghanem, Samar
  • Ferrini, Silvia
  • Di Maria, Corrado

Abstract

Egypt ranks first worldwide for the number of deaths attributable to PM2.5 air pollution, yet the economic value of improved air quality and the value of reducing mortality risk due to industrial air pollution has never been evaluated using primary data for Egypt. In this paper, we fill this gap focusing on the Greater Cairo and Alexandria metropolitan areas, where more than 80 percent of the country’s industrial activities take place. We find that 73% of the 1051 surveyed households are supportive of improved air quality strategy and a reduction by 50 percent from current level of pollution is valued between 212 and 302 LE per month (13.5–19.3US$). The health risk reduction is measured with Value of Statistical Life (VSL) measures that range between 3.81 and 7.0 million LE (242,675–446,000US$). The results confirm that residents are sensitive to environmental air quality levels. Furthermore, when provided with information about the health consequences of pollution, survey respondents increased both their level of support for the policy, and their Willingness to Pay for it.

Suggested Citation

  • Ghanem, Samar & Ferrini, Silvia & Di Maria, Corrado, 2023. "Air pollution and willingness to pay for health risk reductions in Egypt: A contingent valuation survey of Greater Cairo and Alexandria households," World Development, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:wdevel:v:172:y:2023:i:c:s0305750x23001912
    DOI: 10.1016/j.worlddev.2023.106373
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    More about this item

    Keywords

    Willingness to Pay; Value of Statistical Life; PM2.5 Air Pollution; Health Risk Reduction; Information; Egypt;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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