Abstract: The complex pollution problem represented by O₃ and PM_2.5 in Shanghai has been highlighted recently, and it is of great significance for environmental policy decision to rationally assess the impact of atmospheric environment on residents. This study attempts to apply the contingent valuation method to conduct a survey on the willingness to pay for the improvement of atmospheric environmental quality in 500 Shanghai residents. The results show that Shanghai residents pay more attention to the quality of atmospheric environment, and take a positive response, it is estimated that the city in the purchase and use of air purifiers and fog masks in the expenditure of about 2.3 billion yuan/year; 56 percent of the respondents have a willingness to pay to improve the quality of the atmosphere. Income, the degree of education and morbidity are positively correlated with the probability of being willing to pay, while the age is negatively correlated; From the amount of payment, the respondents who have the willingness to pay will be 74 yuan/households to reduce the average daily haze, and the total payment will be about 20 billion yuan by 2016. Education, income, family population, the severity of the disease and protection awareness show significantly positive correlation with the amount of payment, while the age is negatively correlated. To further compare the cost of reducing emissions and the willingness of residents to pay for the major pollutants in Shanghai, it is cost effective to further develop pollution reduction.

Key words: Shanghai, air quality, contingent valuation method, willing-to-pay