The willingness to pay for air quality improvement in Thailand : A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University

Abstract

Along with economic growth, an increase in consumption and production activities leads to lethal consequences from polluted air. Currently, air quality has become a critical environmental problem and a persistent concern in many cities in developing countries. Thailand, an upper middle-income country, has been struggling with severe air quality problems for the past decade. Bangkok’s air pollution has exceeded the WHO standards for several pollutants. The main source of ambient air pollution in Bangkok is road transportation. In addition, the number of road vehicles in Bangkok increased by 54% from 2008 to 2020. Air pollution in Thailand is responsible for the loss of 50,000 lives every year. This is a public health crisis where children, the elderly, and the most vulnerable people are exposed to toxic air on a regular basis. In spite of the severity of the problem, the budget for the management of pollution and the environment between 2007 and 2018 was small. Given insufficient funding to address air pollution, the air quality problems cannot be resolved. A possible impediment to the solution is that the total benefit that people will gain if air pollution is mitigated has not been estimated. This study has three major components: First, it investigates the current air pollution environment in Thailand to identify the key determinants of air pollution in Thailand. Second, it explores people’s behaviour toward the use of road transportation and air quality problems in Thailand to determine people’s perceptions, attitudes, and concerns about air pollution. Third, it assesses the willingness to pay (WTP) for improving air quality and the factors affecting WTP for improving air quality. A self-administered survey questionnaire is used to collect the data at public places, such as malls and parks. Additionally, online, mobile phone, and face time/VDO call surveys are employed due to the COVID-19 pandemic situation in Thailand. The survey estimates the WTP using the double-bounded contingent valuation method. The results indicate that respondents are more likely to pay for improving air quality if 1) they are employed as a government officer, private company officer, self-employed, farmer, or labourer, 2) have knowledge about air pollution, and 3) are concerned about air quality problems when using road transportation. However, respondents who have high incomes and live in the city are less likely to pay for improving air quality. High income earners feel that they have paid a lot of taxes when compared with low-income people. Therefore, they are not willing to pay more for improving air quality. Moreover, respondents who live in urban areas face high costs of living which might lower their priority on clean air due to economic constraints. The results of the WTP estimates reveal that the total benefit that people would gain from air quality improvement is 15 billion Baht in 2020, for the city of Bangkok alone. During that same year, the Thailand environmental expenditure budget for air pollution was 11 billion Baht, for the entire country. These results suggest that the Thai government should dramatically increase the environmental expenditure budget for air pollution. A more appropriate budget would provide needed support and demonstrate a commitment to solving the country’s air quality problems.