How Much Is Clean Air Worth? A Case Study of South Delhi Regions in India

Abstract

Air pollution is one of the most pressing problems in India, taking millions of lives annually. Despite unprecedented air quality deterioration, little is known about individuals’ preferences for air quality improvement in India. As a first step, this study presents results from the preferences for air quality improvement of inhabitants in South Delhi, India, which is part of the city of Delhi and where air pollution is causing extensive health hazards. Adequate knowledge about individuals’ preferences can help in designing more effective health and environmental policies. Overall, we find a significant willingness to pay for improving the air quality in South Delhi. As expected, people with a higher level of education and a higher income are more willing to pay to alleviate and prevent the effects of air pollution. At the same time, significant gender effects are identified; women seem to have more homogeneous preferences regarding air quality than men. Furthermore, due to income inequalities, a significant number of respondents are not willing to pay.