Environment and Development Economics · 2002 · 50 citations · 1 references
Natural ResourcesEconomicsEnvironmental PolicyEnvironmental EconomicsEnvironmental ValuationEnvironmental ValuesContingent ValuationEnvironmental QualityWater EconomicsWater QualityWater Resource EconomicsWillingness To PayEnvironmental ImprovementEnvironmental Quality ManagementHousehold Income DistributionHousehold Income MeasurementIncome LevelSurface Water QualitySurface Water ValuationWater Quality Economics
A contingent valuation study measured citizen willingness to pay (WTP) for an improvement in surface water quality in Latvia. The average respondent was willing to pay 0.7 per cent of household income for the environmental improvement, but that amount was much less than needed to finance the required investments in treatment facilities. While the income elasticity of WTP for the average resident was low (0.56), it increases as income increases, reaching 0.9 at an income level double the current average. As real incomes increase in Latvia, the demand for environmental quality by citizens can be expected to increase substantially.
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