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Comparison of Willingness To Pay (WTP) for an Improvement in Air Quality between Users and Nonusers of Firewood in the City of Talca (Chile)

Author

Listed:
  • Arcadio Cerda Urrutia
  • Leidy Yomary García
  • Alejandra Bahamondez Montecinos
  • Viviana Plobete Castro

Abstract

The objective of this study is to analyze the difference in the willingness to pay (WTP) for an improvement in air quality between users and nonusers of firewood at the locality of Florida in Talca (Chile). This analysis applied a contingent valuation approach, with a doubled-bound dichotomous choice format. By creating a certifying institution of dry firewood and assuming a linear and a logistic distribution function, this method calculates the WTP of an improvement in local air quality. The obtained value suggests the feasibility of financing the certifying institution’s operation costs via an environmental municipal fee. Additionally, the findings imply that Florida’s inhabitants using firewood are willing to pay a smaller amount than those who are not.

Suggested Citation

  • Arcadio Cerda Urrutia & Leidy Yomary García & Alejandra Bahamondez Montecinos & Viviana Plobete Castro, 2010. "Comparison of Willingness To Pay (WTP) for an Improvement in Air Quality between Users and Nonusers of Firewood in the City of Talca (Chile)," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 72, pages 195-212.
  • Handle: RePEc:lde:journl:y:2010:i:72:p:195-212
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    More about this item

    Keywords

    willingness to pay; air pollution costs; contingent valuation;

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other

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