The value of a statistical life of urban air pollution in Ho Chi Minh City, Vietnam

Abstract

Studies on the trade-off between income and environmental quality have been extensively conducted in recent years, particularly in Vietnam. However, research focusing on the Value of Statistical Life (VSL) attributable to environmental pollution remains limited. Consequently, this study calculates the VSL based on the actual self-assessments of individuals in Ho Chi Minh City, one of the largest and most densely populated metropolitan areas, which focus on air pollution. The research utilized a Contingent Valuation (CV) survey approach to estimate the VSL, together with chi square test and binary logistic model to estimate the affecting factors. Survey results from 879 respondents showed that the calculated VSL is about 12.4 million USD, which is much higher than the estimate derived from conventional GDP. Factors including income, age, education level, and residence were found to be significantly related to the respondents' WTP decision, though these linkages are relatively week. The predicting model showed that income and the subjective assessments of the Pneumonia symptoms were related to the probability of reducing income for improved environmental quality. The model demonstrated an overall efficiency exceeding 81% and an accuracy above 74%, with a specificity above 79% and a sensitivity above 68%. The outcomes of this study, therefore, can serve as a valuable reference for subsequent, in-depth research into the correlation between VSL and income, thereby providing a robust basis for developing appropriate pollution reduction strategies.