Assessment of Willingness to Pay for Pollution Prevention, Health and Happiness: A Case Study of Punjab, Pakistan

Abstract

Air pollution has been notoriously held accountable for a substantial number of deaths in several countries. Moreover, its negative impact on people's health and well-being has also been witnessed in countries where air pollution is below the recommended national levels. The urban cities of Pakistan are among the worst South Asian areas in terms of air pollution. Because of this problem, the health and well-being of citizens are affected. The present study investigates the impact of air pollution on urban residents' happiness and health. It analyzes their willingness to pay for pollution prevention and its determinants by employing the data obtained through a primary survey. Pakistanis are unaware of air pollution's effect on health and quality of life, therefore only 12.5% consider this problem very serious. The results confirm the significantly negative effect of air pollution on happiness. Concerning the willingness to pay, it is differentiated in the form of tax and social contribution. Pakistanis are willing to pay more in social contribution in return for different environmental attributes. The results show that only 13% of respondents are not willing to pay for income contribution to improve air quality reporting indifferent attitude and insufficient knowledge of the environment. Our findings suggest that their apprehension concerning the environment influences people's willingness to pay. The study concludes that despite Pakistan's underdeveloped economic stature and its poor and flexible budgetary allocation for the betterment of air quality, most Pakistanis showed their willingness to pay for environmental protection. The government and environmental organizations ought to generate consensus among the general population about environmental importance, individual responsibility, and social duties thereby lessening the free-rider problem and reducing air pollution for better social welfare.

Keywords: air pollution; exposure assessment; happiness; social contribution; tax payment.

Figure 1

Cost of health damage from PM_2.5 exposure in 2019 by region, % equivalent of GDP (PPP). Source: World Bank (14). EAP, East Asia and Pacific; ECA, Europe and Central Asia; LAC, Latin America and Caribbean; MNA, Middle East and North Africa, NA, North America; SA, South Asia; SSA, Sub-Saharan Africa. Numbers may not add up due to rounding.

Figure 2

Death rates from pollution in Pakistan (18).