Valuing Water Quality Improvement in China : A Case Study of Lake Puzhehei in Yunnan Province

While polluted surface water is encountered across most of China, few economic valuation studies have been conducted on water quality changes. Limited information about the economic values associated with those potential water quality improvements or deteriorations is a disadvantage for making proper choices in water pollution control and clean-up activities. This paper reports an economic valuation study conducted in Yunnan, China, which aims to estimate the total value of a real investment project to improve the water quality of Lake Puzhehei by one grade level. Located in Qiubei County, which is far from large cities, the lake has been experiencing fast water quality deterioration in the past years. A conservative estimation strategy shows that on average a household located in Qiubei County is willing to pay about 30 yuan per month continuously for 5 years for water quality improvement, equivalent roughly to 3 percent of household income. The elasticity of willingness-to-pay with respect to income is estimated to be 0.21. The economic rate of return of the proposed project is estimated to be 18 percent, indicating a strong demand and high efficiency of investment in water quality improvement in China. This study also demonstrates that previous knowledge about water quality changes and the project may have a significant positive impact on people's valuation, and that the interviewer effect on valuation can be negative.

Bibliographic Details

Main Authors:	Wang, Hua, Shi, Yuyan, Kim, Yoonhee, Kamata, Takuya
Language:	English
Published:	2011-08-01
Subjects:	AGRICULTURAL USES, AQUATIC LIFE, ARTIFICIAL WETLANDS, BASINS, CANALS, CLEAN WATER, CLEAN-UP, COMMUNITY GROUPS, CONTINGENT VALUATION, CONTINGENT VALUATION METHOD, COVERING, DEFORESTATION, DEVELOPED COUNTRIES, DICHOTOMOUS CHOICE, DRINKING WATER, DRINKING WATER SUPPLIES, ECOLOGICAL CONDITIONS, ECOLOGICAL ECONOMICS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC VALUE, EMPIRICAL ANALYSIS, ENGINEERING, ENVIRONMENTAL, ENVIRONMENTAL ECONOMICS, ENVIRONMENTAL INFORMATION, ENVIRONMENTAL ISSUES, ENVIRONMENTAL PROBLEMS, ENVIRONMENTAL PROTECTION, ENVIRONMENTAL QUALITY, ENVIRONMENTAL QUALITY STANDARDS, ENVIRONMENTAL SCIENCES, EXPENDITURES, FISH, FISHING, FLOODING, FORESTRY, GOVERNMENT EXPENDITURES, GROUNDWATER, HOUSEHOLD USE, HOUSEHOLDS, INVESTMENT PROJECT, IRRIGATION, LAKES, LAND ECONOMICS, LARGE CITIES, LOCAL COMMUNITY, MUNICIPALITIES, NATURAL RESOURCES, PESTICIDES, PH, POLLUTION CONTROL, POSITIVE EXTERNALITIES, PRESSURE, PUBLIC HEALTH, PUBLIC TRANSPORTATION, PUBLIC WATER, QUALITY ASSESSMENT, QUALITY STANDARDS, RENEWABLE WATER RESOURCES, RESERVOIRS, RESOURCE MANAGEMENT, RIVERS, RUNOFF, SOLID WASTE, SOLID WASTE COLLECTION, SOLID WASTE DISPOSAL, SOLID WASTE MANAGEMENT, SOLID WASTES, STREAMS, SURFACE WATER, SURFACE WATER QUALITY, SURFACE WATERS, SUSTAINABLE DEVELOPMENT, TOWN, TREATMENT PLANTS, URBAN AREAS, UTILITIES, WASTE DISPOSAL, WASTE MANAGEMENT, WASTEWATER, WASTEWATER TREATMENT, WASTEWATER TREATMENT FACILITIES, WATER AVAILABILITY, WATER BASINS, WATER CONTAMINATION, WATER DEMAND, WATER POLLUTION, WATER QUALITY, WATER QUALITY IMPROVEMENT, WATER RESERVOIRS, WATER RESOURCE, WATER RESOURCE MANAGEMENT, WATER RESOURCES, WATER SCARCITY, WATER SOURCE, WATER SOURCES, WATER SYSTEMS, WATERSHED, WILLINGNESS TO PAY, WTP,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110822084029 https://hdl.handle.net/10986/3528
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