Investigation and determination of influential factors on small industries’ willingness to pay (WTP) in order to reduce the environmental pollutions (Case study: Sari County)

Subject Areas : environmental management

Hamid Amirnejad ¹ , Hamed Rafiee ²

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Received: 2008-06-28 Accepted : 2008-10-11 Published : 2011-09-23

Keywords: Small Industrials, Pollution, Environmental Preservation, Willingness to Pay (WTP), Sari County,

Abstract :

Because of less supervision on small industries, environmental standards are applied in lower degrees and as a result, the environment will become comparatively more polluted. In this regards, 32 small industrial centers in city of Sari were investigated by cluster branch sampling and contingent valuation method (CVM), and consequently, the effects of different variables on industries’ willingness to pay in order to reduce the environmental pollution were identified. Results of estimation showed that the higher effect in acceptation of bids is related to industries monthly income. By one percent of income growth, probability for acceptation of bids for environmental preservation was increased by 0.4124 units. In this study, variables such as industrial pollution, managers’ environmental information, managers’ level of education, indigenous managers, and industrial monthly income showed positive and significant effect in acceptation of bid for environmental preservation in the province. Conversely, variables of constant industries’ capital, number of industrial labors, and the amount of offered bid and average of salaries showed negative significant effect in this regards. By application of CVM estimation, annual and monthly WTP of small industries in order to preserve environment was estimated at 180842.55 and 2170110.60 Rials, respectively. Thereafter, these quantities can be used in taxation and persuasive guidelines towards the reduction of environmental pollutions