Factors Affecting Individuals’ Willingness to Pay for the Reduction of Industrial Pollution: Empirical Findings from the Indian Himalayan Region

Document Type : Original Research Paper

Authors

Department of Humanities and Social Sciences, National Institute of Technology, Hamirpur, Himachal Pradesh, India

10.22059/poll.2024.371503.2232

Abstract

The study aims to assess an individual's willingness to pay (WTP) to mitigate industrial pollution in the Indian Himalayan Region (IHR) and to analyse the role of socio-economic and psycho-social factors influencing WTP. Primary data for the study is collected from a critically polluted area of Byrnihat (Assam), India, by employing a double-bounded dichotomous choice (DBDC) method, and the data is analysed using descriptive statistics and a maximum likelihood estimation (MLE) method. The results revealed that the mean WTP amounts to INR 218 (USD 2.62) per household per month. About 73% of the respondents have expressed their WTP. Psycho-social factors such as awareness about environmental issues and knowledge about the advantages of a pollution-free environment influence the willingness of individuals to contribute. Education, income, and gender are among the key socio-economic factors that positively affect the monetary value of WTP. The study highlights the problem of industrial pollution, which has started affecting the fragile ecosystem of the IHR as well. Thus, research has been conducted to determine the importance of a clean and pollution-free environment to people residing near industrial units. The results underscore the urgency of enacting stringent environmental regulations that target neglected industrial clusters in the IHR.

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