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Accept or Pay? A Study of the WTA–WTP Disparity Due to Airborne Lead Pollution

Author

Listed:
  • Angie Diaz Rodríguez

    (Faculty of Environmental Engineering, Universidad Privada del Norte, Lima 15314, Peru)

  • Edwin Espinoza Castillo

    (Faculty of Environmental Engineering, Universidad Privada del Norte, Lima 15314, Peru)

  • José Bazán Correa

    (Faculty of Industrial Engineering, Universidad Nacional de Piura, Castilla, Piura 20002, Peru)

  • Luz Camarena Miranda

    (Faculty of Economics and Accounting, Universidad Nacional Daniel Alcides Carrión, Cerro de Pasco 19001, Peru)

  • Mario Maguiña Mendoza

    (Faculty of Administrative Sciences, Universidad Nacional del Callao, Callao 07011, Peru)

  • Jorge Castillo Prado

    (Faculty of Administrative Sciences, Universidad Nacional del Callao, Callao 07011, Peru)

  • Walter Caballero-Montañez

    (Faculty of Accounting Sciences, Universidad Nacional del Callao, Callao 07011, Peru)

  • Richard Huapaya Pardavé

    (Faculty of Environmental Engineering and Natural Resources, Universidad Nacional del Callao, Callao 07011, Peru)

  • Rubén Rodriguez-Flores

    (Faculty of Environmental Engineering and Natural Resources, Universidad Nacional del Callao, Callao 07011, Peru)

  • Alex Pilco-Nuñez

    (Faculty of Chemical and Textile Engineering, Universidad Nacional de Ingeniería, Lima 15333, Peru)

  • Evelyn Sánchez Lévano

    (Faculty of Economic Sciences, Universidad Nacional del Callao, Callao 07011, Peru)

Abstract

This research aims to evaluate the economic valuation of lead air pollution in the AA.HH. Virgen de Guadalupe, Callao, Peru. A survey was conducted with 182 residents, focusing on air quality, temporary exposure to pollution, aesthetic appreciation of the environment, willingness to accept (WTA) economic compensation, and willingness to pay (WTP) to mitigate lead air pollution. The data were analyzed using the logit model through STATA16 software. The results revealed that 62.09% of respondents were willing to accept economic compensation, while 56.04% expressed willingness to pay for reducing lead pollution. Furthermore, it was determined that the average monthly WTP is PEN 62.48 (USD 16.47), amounting to PEN 1,201,865.28 (USD 329,103.16) annually for the entire population of 1603 residents. In contrast, the average monthly WTA per resident is PEN 153.59 (USD 40.48), totaling PEN 2,954,457.24 (USD 809,010.16) annually due to lead air pollution. The study concluded that environmental perception, awareness, the desire to maximize present utility, and uncertainty about the future significantly influence the economic valuation of lead air pollution in this community.

Suggested Citation

  • Angie Diaz Rodríguez & Edwin Espinoza Castillo & José Bazán Correa & Luz Camarena Miranda & Mario Maguiña Mendoza & Jorge Castillo Prado & Walter Caballero-Montañez & Richard Huapaya Pardavé & Rubén R, 2025. "Accept or Pay? A Study of the WTA–WTP Disparity Due to Airborne Lead Pollution," Sustainability, MDPI, vol. 17(12), pages 1-21, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5246-:d:1673444
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