Economic analysis of exposure to the elevated level of PM10 in Vietnam: a COI and WTP approach

Abstract

To understand the harm caused by air pollution and attract attention from government agencies, this study estimates the exposure to the elevated level of PM10 and its effect on health. This study employed two distinct approaches: cost-of-illness (COI) and willingness-to-pay (WTP). The results revealed that people are willing to pay for risk reduction initiatives, and the difference between COI and WTP is negligible. The entire sum estimated from the COI and WTP is adequate to pay the complete expenses of air pollution mitigation measures such as the deployment of Bus Rapid Transit. Therefore, government officials may concentrate on the best technique for lowering air pollution, notably in Vietnam. In the short term, hiking taxes to reduce carbon emissions in the city and implementing a subsidy plan for impacted stakeholders may be necessary. On the other hand, long-term solutions may include economic transformation and the building of a greener metropolis.