Kuwaiti consumers’ willingness to pay for environmental protection in Failaka island: a contingent valuation analysis

Abstract

Purpose Evidence suggests that a growing number of consumers across the world are becoming more environmentally responsible in terms of their personal habits and lifestyles. In this paper, the authors aim to use both parametric and non-parametric econometric models to estimate Kuwaiti consumers’ willingness to pay (WTP) for environmental protection in Failaka island. Design/methodology/approach Contingent valuation methods based on log-logistic and log-normal regression models revealed that consumers in Kuwait are willing to pay a price premium of approximately 40 Kuwaiti dinars for environmental protection in Failaka island based on the double-bound dichotomous choice model. Findings Socio-economic variables have no significant influence on the respondent’s WTP. As expected income has a positive relationship with WTP and bid price has negative relationship with WTP to protect the environment in Failaka island. Originality/value This study highlight the fact that understanding consumers’ environmental-friendly behaviors may play an important role in formulating environmental policy changes to face complex problems as diverse as environmental pollution or environmental degradation.