Internet use and willingness to pay for air quality improvements: Evidence from China

Abstract

In recent decades, there has been growing concern about what determines people’s willingness to pay (WTP) for environmental resources. Based on data from the Chinese General Social Survey, this study investigates the impact of Internet use on Chinese residents’ WTP for air quality improvements. Results from instrumental variable estimation show that Internet use is positively associated with both the likelihood of paying for clean air and the amount individuals are willing to contribute. Mechanism analysis suggests that Internet use enhances WTP by raising environmental risk perception and strengthening environmental protection awareness. Moreover, heterogeneity analysis indicates that the positive association is more pronounced among individuals with lower socio-economic status. These findings shed light on the potential of Internet technology in cultivating public pro-environmental behaviors and awareness in the digital era.