Estimating Willingness to Pay for Improved Stoves in Rural China Using Averting Behavior Method, 2013. Fei Yu, Asian Development Bank
Indoor air pollution (IAP) is a leading health risk factor for rural households in developing countries (Ezzati, et al, 2002). The combination of heavy reliance on solid fuel (biomass and coal) and low efficiency stoves, together with poor ventilation, results in dangerous levels of pollutants in the form of gases and suspended particulates (Smith, 1999). It accounts for more than 500,000 deaths annually in China, and ranks as the fourth most important cause of loss of a healthy life (DALYs) in developing countries (Ezzati and Baris ed. 2007). Women and children are particularly affected by IAP, as normally they are in the cooking area or home environment much longer than other family members. During 2002-2006, the World Bank and Government of China tested affordable household energy technologies and behavioral interventions designed to substantially reduce IAP and exposure to it and, thereby, to lower the associated health risks (Ezzati and Baris ed, 2007).
This paper uses the household level data collected during the World Bank/Chinese Government project to estimate rural households’ willingness to pay for improved stoves to avoid health risks due to indoor air pollution. The estimates indicate how household demographics, income, education, and health history affect households’ willingness to pay (WTP) for improved stoves using a probit model. Presence of children 5 and younger and participation in health education activities are major factors associated with greater WTP for improved stoves. These estimates appear to be a first for determining WTP for averting IAP related health risks in rural China.
