Residents’ preferred measures and willingness-to-pay for improving urban air quality: A case study of Hanoi city, Vietnam

Abstract

Purpose – This purpose of this paper is to understand residents’ choice of preferred measures and their willingness-to-pay (WTP) for the measures to improve the air quality of Hanoi city. Design/methodology/approach – Questionnaire surveys were conducted to collect the opinions of 212 household representatives living in Hanoi City. The survey tools were tested and adjusted through an online survey with 191 responses. Multivariate probit and linear regression models were used to identify determinants of respondents’ choices of measures and their WTP. Findings – Respondents expressed their strong preferences for three measures for air quality improvements, including: (1) increase of green spaces; (2) use of less polluting fuels; (3) expansion of public transportation. The mean WTP for the implementation of those measures was estimated at about 148,000–282,000 Vietnamese dong, equivalent to 0.09–0.16% of household income. The respondents’ choices appear to be consistent with their characteristics and needs, such as financial affordability, time on roads and their perceived impacts of air pollution. The WTP estimates increase with perception of air pollution impacts, time on roads, education and income; but are lower for older people. Practical implication – Increase of green spaces can be the measure to which policy makers should pay more attention. The match-up of residents needs and well-informed plans will be an important key to success. Originality/value – This appears to be the first attempt to test the validity of public opinions on choices of measures for improving urban air quality in Vietnam. Our WTP estimates also contribute to the database on the values of improved air quality in the developing world.