Environmental and Resource Economics

, Volume 7, Issue 1, pp 45–55

Is the income elasticity of environmental improvements less than one?


  • Bengt Kristrom
    • Department of Forest EconomicsSLU
  • Pere Riera
    • Universitat Autonoma de Barcelona

DOI: 10.1007/BF00420426

Cite this article as:
Kristrom, B. & Riera, P. Environ Resource Econ (1996) 7: 45. doi:10.1007/BF00420426


We estimated the income elasticity of environmental improvements for a number of European data-sets. The value of this parameter is consistently found to be less than one, with few exceptions. Our findings are compared with state-of-the-art contingent valuation studies from other countries. We also compared our findings with those reported in the literature on charitable donations and corporate donations. These studies show a similar pattern; donations decrease as a percentage of income, as income increases.

Key words

Distributional issuesenvironmental elitismincome elasticityvaluation

Copyright information

© Kluwer Academic Publishers 1996