Arbeitspapier
Higher Water Tariffs for Less River Pollution - Evidence from Min River and Fuzhou City, People's Republic of China
Upstream nonpoint source pollution has become a significant threat to urban drinking water safety in the People's Republic of China. Payment for environmental services (PES) is seen as a promising mechanism to deal with the situation. In designing a sound PES, it is crucial to determine the willingness to pay (WTP) of urban beneficiaries for upstream water pollution controls. An analysis of household data from a contingent valuation survey conducted in Fuzhou in 2009 reveals that household income is the most important factor in determining respondents' positions on water tariff increases as well as WTP under a PES scheme. Mean WTP varies from Yuan (CNY) -0.45 per cubic meter to CNY0.86 for different income groups. The overall mean WTP is estimated to be CNY0.21, which is equivalent to a 10% increase in the current tariff, with the 95% confidence interval at (CNY0.12, CNY0.31). The point estimate implies a total annual WTP of Fuzhou City equal to CNY22 million, which is 27% less than the contribution of Fuzhou to an ongoing government-financed PES. However, with continuous water tariff increases, affordability among low-income households might arise as an issue. This calls for subsidies targeting low-income households to be incorporated in water tariff reform.
- Language
-
Englisch
- Bibliographic citation
-
Series: ADB Economics Working Paper Series ; No. 201
- Classification
-
Wirtschaft
- Subject
-
nonpoint source pollution
payment for environmental services (PES)
urban water
Gewässerbelastung
Wasser
Gebühr
Fuzhou
China
- Event
-
Geistige Schöpfung
- (who)
-
Jiang, Yi
Jin, Leshan
Lin, Tun
- Event
-
Veröffentlichung
- (who)
-
Asian Development Bank (ADB)
- (where)
-
Manila
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Jiang, Yi
- Jin, Leshan
- Lin, Tun
- Asian Development Bank (ADB)
Time of origin
- 2010
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