Environmental and Resource Economics

, Volume 7, Issue 1, pp 45–55

Is the income elasticity of environmental improvements less than one?

  • Bengt Kristrom
  • Pere Riera
Article

Abstract

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 issues environmental elitism income elasticity valuation 

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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Bengt Kristrom
    • 1
  • Pere Riera
    • 2
  1. 1.Department of Forest EconomicsSLUUmeåSweden
  2. 2.Universitat Autonoma de BarcelonaBellaterraSpain

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