Inverse Relationship between Poverty and Willingness to Pay for Sustainable Environment

Abstract

Personal interest is prime interest; except in some exceptional cases, most people worldwide continuously pursue their own (and family) concerns first and letter for the rest of the world. This study attempts to determine the relationship between poverty and willingness to pay for a better and sustainable environment. Panel data techniques were used for the econometric analysis. The hypothesis was developed and tested for the whole panel data and then for different regions of the world with high/low-income and developed and developing countries. The study’s results support the hypothesis “more the poverty, less the willingness to pay”; there is an inverse relationship between poverty and willingness to pay for sustainable development and an eco-friendly and sustainable environment. The dream of sustainable development cannot be fulfilled without alleviating poverty at a minimum possible level.