Spatial heterogeneity and transboundary pollution: A contingent valuation (CV) study on the Xijiang River drainage basin in south China

Jie He, Anping Huang and Luodan Xu

China Economic Review, 2015, vol. 36, issue C, 101-130

Abstract: We examine how transboundary river pollution affects WTP for a river improvement project. The survey conducted in 20 cities of the Xijiang River basin demonstrates that downstream city report lower WTP when its upstream is more polluted. This negative externality decreases with distance and relative bargaining power of downstream city. The simulated gain in social benefit from an integrated river basin management, which reduces people's concerns about this externality, is significant. Such gain can also be regarded as upper bound for transfer from downstream to upstream in the “Ecological Service Payment” regime, a market-based environmental policy under pilot in China.

Keywords: Transboundary water pollution; Spatial dimension; Contingent valuation; River water management; Ecological service payment (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (8)

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Working Paper: Spatial heterogeneity and transboundary pollution: a contingent valuation study on the Xijiang River drainage basin in south China (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:36:y:2015:i:c:p:101-130

DOI: 10.1016/j.chieco.2015.08.011

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