Variation in Willingness-to-Pay Estimates Depending on the Magnitude of the Reduction in the Risk of Death from Air Pollution

The present study endeavors to elucidate the variability in estimates of willingness-to-pay (WTP) concerning the mitigation of mortality risk attributable to air pollution, contingent upon the extent of the corresponding risk reduction. Through the lens of air pollution control projects, the research seeks to discern fluctuations in WTP estimates, thereby shedding light on the intricacies of decision-making processes surrounding environmental management initiatives. The salience of this inquiry stems from the escalating prevalence of methodologies employing willingness-to-pay assessments as a yardstick for evaluating the value of human life across diverse spheres of societal activity, thereby informing policy deliberations by regulatory authorities. Central to the research quandary is the recognition that alterations in the magnitude of risk reduction can engender disproportional shifts in WTP values, holding all other variables constant. This phenomenon engenders a profound reliance on the methodological framework employed, thereby exerting a substantial influence on the resultant cost-of-living appraisals. Employing the contingent valuation method grounded in stated preferences within a double dichotomous choice framework, empirical findings reveal that WTP for reducing mortality risk from air pollution escalates by 43.8 %, ascending from 11 713 to 16 839 rubles, concomitant with a twofold increase in the reduction rate, from 2.5 to 5.0 per 10,000 inhabitants. This equates to a reduction in mortality rates from 100.0 to 97.5 and 100.0 to 95.0 per 10,000 inhabitants, respectively, all else being equal. The implications drawn from these conclusions are pivotal in guiding the formulation, execution, and interpretation of research endeavors pertaining to cost-of-living assessments across diverse contexts. Furthermore, they furnish critical insights for substantiating policy decisions within regulatory bodies, thereby enhancing the efficacy and integrity of environmental management initiatives.