The relationship between environmental values and income in a transition economy: Surface water quality in Latvia

Richard C. Ready, Jânis Malzubris, Silva Senkane

Research output: Contribution to journalArticlepeer-review

30 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)147-156
Number of pages10
JournalEnvironment and Development Economics
Volume7
Issue number1
DOIs
StatePublished - Feb 2002

All Science Journal Classification (ASJC) codes

  • Development
  • Environmental Science(all)
  • Economics and Econometrics

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