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...

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Main Authors: Wang, Hua, Shi, Yuyan, Kim, Yoonhee, Kamata, Takuya
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
PH
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
http://hdl.handle.net/10986/3528
id okr-10986-3528
recordtype oai_dc
spelling okr-10986-35282021-04-23T14:02:10Z Valuing Water Quality Improvement in China : A Case Study of Lake Puzhehei in Yunnan Province Wang, Hua Shi, Yuyan Kim, Yoonhee Kamata, Takuya 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 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. 2012-03-19T18:04:03Z 2012-03-19T18:04:03Z 2011-08-01 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 http://hdl.handle.net/10986/3528 English Policy Research working paper ; no. WPS 5766 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper East Asia and Pacific East Asia and Pacific East Asia Asia China
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic 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
spellingShingle 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
Wang, Hua
Shi, Yuyan
Kim, Yoonhee
Kamata, Takuya
Valuing Water Quality Improvement in China : A Case Study of Lake Puzhehei in Yunnan Province
geographic_facet East Asia and Pacific
East Asia and Pacific
East Asia
Asia
China
relation Policy Research working paper ; no. WPS 5766
description 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.
format Publications & Research :: Policy Research Working Paper
author Wang, Hua
Shi, Yuyan
Kim, Yoonhee
Kamata, Takuya
author_facet Wang, Hua
Shi, Yuyan
Kim, Yoonhee
Kamata, Takuya
author_sort Wang, Hua
title Valuing Water Quality Improvement in China : A Case Study of Lake Puzhehei in Yunnan Province
title_short Valuing Water Quality Improvement in China : A Case Study of Lake Puzhehei in Yunnan Province
title_full Valuing Water Quality Improvement in China : A Case Study of Lake Puzhehei in Yunnan Province
title_fullStr Valuing Water Quality Improvement in China : A Case Study of Lake Puzhehei in Yunnan Province
title_full_unstemmed Valuing Water Quality Improvement in China : A Case Study of Lake Puzhehei in Yunnan Province
title_sort valuing water quality improvement in china : a case study of lake puzhehei in yunnan province
publishDate 2012
url 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
http://hdl.handle.net/10986/3528
_version_ 1764387147527225344