Determinants of Household Willingness to Pay for Improved Urban Air Quality: Evidence from Khulna City, Bangladesh

Air pollution is a major public health and environmental challenge in Bangladesh, with limited evidence on residents’ economic valuation of air quality improvements, particularly in secondary cities. This study analyses determinants of households’ willingness to pay (WTP) for improved air quality in Khulna City using face-to-face survey data from 385 households. WTP was modelled as a binary outcome with logistic regression. About 41.8% of respondents reported WTP. Perceived air pollution, household respiratory illness, proximity to major roads, and engagement in informal occupations significantly increase WTP, whereas lower educational attainment reduces it. Income and gender are not significant predictors. The model shows acceptable discrimination (ROC–AUC = 0.72). The results highlight the importance of risk perception, health experience, and exposure in shaping environmental valuation behaviour and offer local evidence to inform awareness actions and practical financing strategies for improving urban air quality in Bangladesh.