Poverty and employment status as determinants of willingness to pay for the improvement of environmental quality in low-income neighbourhood: The case of Bophelong township (South Africa)

Abstract

The introduction of any substance into the environment that leads to the deterioration in the ambient quality of the environment is deemed as pollution (including air-pollution). Based on this environment legislation is often promulgated to minimise the negative impact of human actions on the environment. This study investigates the determinants of willingness to pay for the improvement in environmental quality in a South African Township of Bophelong. The OLS regression was used to investigate the effect that poverty and employment status has on the willingness to pay for a smoke free environment. The results of the study indicate that both employment and poverty status are significant determinants of the willingness to pay for a smoke free environment but poverty status has a negative coefficient whereas employment status has a positive coefficient. On average people who are employed are willing to pay more for a smoke free environment than those that are unemployed.