Volume 14, Issue 53 (12-2025)
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Touranie F, Ataie solout K, Amirnejad H. Estimating the Economic Damage Costs of Air Pollution Using a Comparative Willingness to Pay (WTP) and Willingness to Accept (WTA) Approach (Case Study: Antibiotic Manufacturing Plant in Sari County). serd 2025; 14 (53)
URL: http://serd.khu.ac.ir/article-1-4063-en.html
URL: http://serd.khu.ac.ir/article-1-4063-en.html
1- Department of Agricultural Economic Engineering, Faculty of Agricultural Engineering, Sari Agricultural Sciences and Natural Resources University, Iran
2- Department of Agricultural Economic Engineering, Faculty of Agricultural Engineering, Sari Agricultural Sciences and Natural Resources University, Iran ,kamal.ataie.s@gmail.com
2- Department of Agricultural Economic Engineering, Faculty of Agricultural Engineering, Sari Agricultural Sciences and Natural Resources University, Iran ,
Abstract: (28 Views)
Objective: In recent years, environmental considerations have gained significant importance across all sectors of the country, particularly in rural areas. The present study aims to estimate the economic damage costs of air pollution caused by the emission of unpleasant odors from pharmaceutical production in Sari County using the contingent valuation method.
Methods: This study examines the effects of economic, social, and environmental variables on individuals’ acceptance or rejection of proposed bid amounts in relation to their willingness to pay (WTP) and willingness to accept (WTA) for improving or tolerating the current air quality conditions surrounding the antibiotic manufacturing plant in Sari County. To this end, Cochran’s sampling method was used for sample selection, and a one-and-a-half-bounded dichotomous choice format was applied to collect preference data within the contingent valuation framework. The extracted data were then used to estimate the corresponding valuation functions.
Results: In the WTP model, the variables (1) homeowner–tenant status, (2) educational level, and (3) membership in non-governmental organizations had positive and statistically significant effects on the acceptance of bid amounts, while the bid price variable hurt individuals’ willingness to pay for improving the surrounding air quality of the antibiotic plant. In the WTA model, the variables (1) bid price, (2) ethical–goal orientation, and (3) individual monthly income had positive and significant effects on willingness to accept compensation for maintaining the current air quality, whereas (1) age and (2) educational level had negative effects.
Conclusions: The mean WTA and WTP values were estimated at 791.339 million and 32.705 million tomans per year, respectively. These amounts represent the estimated economic damage costs imposed on communities surrounding this industrial facility as a result of air pollution.
Methods: This study examines the effects of economic, social, and environmental variables on individuals’ acceptance or rejection of proposed bid amounts in relation to their willingness to pay (WTP) and willingness to accept (WTA) for improving or tolerating the current air quality conditions surrounding the antibiotic manufacturing plant in Sari County. To this end, Cochran’s sampling method was used for sample selection, and a one-and-a-half-bounded dichotomous choice format was applied to collect preference data within the contingent valuation framework. The extracted data were then used to estimate the corresponding valuation functions.
Results: In the WTP model, the variables (1) homeowner–tenant status, (2) educational level, and (3) membership in non-governmental organizations had positive and statistically significant effects on the acceptance of bid amounts, while the bid price variable hurt individuals’ willingness to pay for improving the surrounding air quality of the antibiotic plant. In the WTA model, the variables (1) bid price, (2) ethical–goal orientation, and (3) individual monthly income had positive and significant effects on willingness to accept compensation for maintaining the current air quality, whereas (1) age and (2) educational level had negative effects.
Conclusions: The mean WTA and WTP values were estimated at 791.339 million and 32.705 million tomans per year, respectively. These amounts represent the estimated economic damage costs imposed on communities surrounding this industrial facility as a result of air pollution.
Keywords: Contingent Valuation, Public Preferences, Air Pollution, Antibiotic Production, Environment.
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