6533b836fe1ef96bd12a131c
RESEARCH PRODUCT
The relationship between environmental values and income in a transition economy: surface water quality in Latvia
Richard C. ReadySilva SenkaneJânis Malzubrissubject
Economics and EconometricsContingent valuationDevelopmentAgricultural economicsMicroeconomicsWillingness to payTransition economySurface water qualityRespondentEconomicsHousehold incomeIncome elasticity of demandEnvironmental qualityGeneral Environmental Sciencedescription
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.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2002-02-01 | Environment and Development Economics |