Public willingness to pay for urban smog mitigation and its determinants: A case study of Beijing, China

With the deteriorating air pollution in the urban areas of China, particularly the unprecedentedly high levels of smog, public demand for clean air is increasing. This study examines the values of public willingness to pay (WTP) for three smog mitigation scenarios in the urban areas of Beijing and investigates their determinants by employing the contingent valuation method (CVM) and interval regression model. The empirical results suggest that more than 80% of the respondents is willing to pay for smog mitigation. Respondents' WTP rises with an increasing smog mitigation percentage, and the amount of WTP for 30%, 45%, and 60% smog mitigation, respectively, is 615.13 CNY, 716.34 CNY, and 914.49 CNY, accounting for 0.55%, 0.64%, and 0.82% of their annual income. In contrast with other cities, the ratio of WTP to income in Beijing seems to situate inside a relatively moderate range. Moreover, respondents' knowledge, risk perception, and attitude toward government are positively and significantly correlated with their WTP, and other determinants such as age, health condition, and annual income also significantly affect the value of WTP. We further recommend several important policy implications, which offer new evidence for developing specific policies to tackle smog pollution.