IDEAS home Printed from https://ideas.repec.org/a/eee/chieco/v36y2015icp101-130.html
   My bibliography  Save this article

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

Author

Listed:
  • He, Jie
  • Huang, Anping
  • Xu, Luodan

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.

Suggested Citation

  • He, Jie & Huang, Anping & Xu, Luodan, 2015. "Spatial heterogeneity and transboundary pollution: A contingent valuation (CV) study on the Xijiang River drainage basin in south China," China Economic Review, Elsevier, vol. 36(C), pages 101-130.
    • Handle: RePEc:eee:chieco:v:36:y:2015:i:c:p:101-130
    DOI: 10.1016/j.chieco.2015.08.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X1500111X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.chieco.2015.08.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. DeShazo, J. R., 2002. "Designing Transactions without Framing Effects in Iterative Question Formats," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 360-385, May.
    2. Christian A. Vossler & Maurice Doyon & Daniel Rondeau, 2012. "Truth in Consequentiality: Theory and Field Evidence on Discrete Choice Experiments," American Economic Journal: Microeconomics, American Economic Association, vol. 4(4), pages 145-171, November.
    3. Rolfe, John & Windle, Jill, 2010. "Do values for protecting iconic assets vary across populations? A Great Barrier Reef case study," Research Reports 95054, Australian National University, Environmental Economics Research Hub.
    4. Bateman, Ian J. & Day, Brett H. & Georgiou, Stavros & Lake, Iain, 2006. "The aggregation of environmental benefit values: Welfare measures, distance decay and total WTP," Ecological Economics, Elsevier, vol. 60(2), pages 450-460, December.
    5. Holmes, Thomas P. & Bergstrom, John C. & Huszar, Eric & Kask, Susan B. & Orr, Fritz III, 2004. "Contingent valuation, net marginal benefits, and the scale of riparian ecosystem restoration," Ecological Economics, Elsevier, vol. 49(1), pages 19-30, May.
    6. Zhao, Laijun & Li, Changmin & Huang, Rongbing & Si, Steven & Xue, Jian & Huang, Wei & Hu, Yue, 2013. "Harmonizing model with transfer tax on water pollution across regional boundaries in a China’s lake basin," European Journal of Operational Research, Elsevier, vol. 225(2), pages 377-382.
    7. Yohei Mitani & Nicholas E. Flores, 2009. "Demand Revelation, Hypothetical Bias, and Threshold Public Goods Provision," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 44(2), pages 231-243, October.
    8. Hua Wang & Jie He, 2011. "Estimating individual valuation distributions with multiple bounded discrete choice data," Applied Economics, Taylor & Francis Journals, vol. 43(21), pages 2641-2656.
    9. Alberini, Anna & Boyle, Kevin & Welsh, Michael, 2003. "Analysis of contingent valuation data with multiple bids and response options allowing respondents to express uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 40-62, January.
    10. James Murphy & Thomas Stevens & Lava Yadav, 2010. "A Comparison of Induced Value and Home-Grown Value Experiments to Test for Hypothetical Bias in Contingent Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 111-123, September.
    11. repec:ebl:ecbull:v:3:y:2004:i:6:p:1-13 is not listed on IDEAS
    12. Roy Brouwer & Julia Martin-Ortega & RJulio Berbel, 2010. "Spatial Preference Heterogeneity: A Choice Experiment," Land Economics, University of Wisconsin Press, vol. 86(3).
    13. Herriges, Joseph A. & Shogren, Jason F., 1996. "Starting Point Bias in Dichotomous Choice Valuation with Follow-Up Questioning," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 112-131, January.
    14. Bateman, Ian J. & Langford, Ian H. & Jones, Andrew P. & Kerr, Geoffrey N., 2001. "Bound and path effects in double and triple bounded dichotomous choice contingent valuation," Resource and Energy Economics, Elsevier, vol. 23(3), pages 191-213, July.
    15. F. O. Boadu, 1992. "Contingent Valuation For Household Water In Rural Ghana," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(3), pages 458-465, September.
    16. Brouwer, Roy & Slangen, Louis H G, 1998. "Contingent Valuation of the Public Benefits of Agricultural Wildlife Management: The Case of Dutch Peat Meadow Land," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(1), pages 53-72.
    17. KyeongAe Choe & Dale Whittington & Donald T. Lauria, 1996. "The Economic Benefits of Surface Water Quality Improvements in Developing Countries: A Case Study of Davao, Philippines," Land Economics, University of Wisconsin Press, vol. 72(4), pages 519-537.
    18. Broch, Stine Wamberg & Strange, Niels & Jacobsen, Jette B. & Wilson, Kerrie A., 2013. "Farmers' willingness to provide ecosystem services and effects of their spatial distribution," Ecological Economics, Elsevier, vol. 92(C), pages 78-86.
    19. Wallace E. Oates & Paul R. Portney & Wallace E. Oates & Paul R. Portney, 2004. "The Political Economy of Environmental Policy," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 1, pages 3-30, Edward Elgar Publishing.
    20. Bruno Lanz & Allan Provins, 2013. "Valuing Local Environmental Amenity with Discrete Choice Experiments: Spatial Scope Sensitivity and Heterogeneous Marginal Utility of Income," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 105-130, September.
    21. Gerard van der Laan & Nigel Moes, 2012. "Transboundary Externalities and Property Rights: An International River Pollution Model," Tinbergen Institute Discussion Papers 12-006/1, Tinbergen Institute.
    22. Welsh, Michael P. & Poe, Gregory L., 1998. "Elicitation Effects in Contingent Valuation: Comparisons to a Multiple Bounded Discrete Choice Approach," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 170-185, September.
    23. Pate, Jennifer & Loomis, John, 1997. "The effect of distance on willingness to pay values: a case study of wetlands and salmon in California," Ecological Economics, Elsevier, vol. 20(3), pages 199-207, March.
    24. Hammitt, James K. & Liu, Jin-Tan & Liu, Jin-Long, 2001. "Contingent valuation of a Taiwanese wetland," Environment and Development Economics, Cambridge University Press, vol. 6(2), pages 259-268, May.
    25. Jørgensen, Sisse Liv & Olsen, Søren Bøye & Ladenburg, Jacob & Martinsen, Louise & Svenningsen, Stig Roar & Hasler, Berit, 2013. "Spatially induced disparities in users' and non-users' WTP for water quality improvements—Testing the effect of multiple substitutes and distance decay," Ecological Economics, Elsevier, vol. 92(C), pages 58-66.
    26. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    27. Rebecca Moore & Bill Provencher & Richard C. Bishop, 2011. "Valuing a Spatially Variable Environmental Resource: Reducing Non-Point-Source Pollution in Green Bay, Wisconsin," Land Economics, University of Wisconsin Press, vol. 87(1), pages 45-59.
    28. Helland, Eric & Whitford, Andrew B., 2003. "Pollution incidence and political jurisdiction: evidence from the TRI," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 403-424, November.
    29. Sigman, Hilary, 2005. "Transboundary spillovers and decentralization of environmental policies," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 82-101, July.
    30. Yang, Wu & Chang, Jie & Xu, Bin & Peng, Changhui & Ge, Ying, 2008. "Ecosystem service value assessment for constructed wetlands: A case study in Hangzhou, China," Ecological Economics, Elsevier, vol. 68(1-2), pages 116-125, December.
    31. Nancy E. Bockstael, 1996. "Modeling Economics and Ecology: The Importance of a Spatial Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1168-1180.
    32. Hilary Sigman, 2002. "International Trade and Pollution in Shared Resources: A Study of International Rivers," Departmental Working Papers 200223, Rutgers University, Department of Economics.
    33. Wang, Hua, 1997. "Treatment of "Don't-Know" Responses in Contingent Valuation Surveys: A Random Valuation Model," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 219-232, February.
    34. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
    35. William D. Schulze & Ralph C. d'Arge & David S. Brookshire, 1981. "Valuing Environmental Commodities: Some Recent Experiments," Land Economics, University of Wisconsin Press, vol. 57(2), pages 151-172.
    36. Peter Hills & Lei Zhang & Jianhua Liu, 1998. "Transboundary Pollution between Guangdong Province and Hong Kong: Threats to Water Quality in the Pearl River Estuary and Their Implications for Environmental Policy and Planning," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 41(3), pages 375-396.
    37. Vossler, Christian A. & Evans, Mary F., 2009. "Bridging the gap between the field and the lab: Environmental goods, policy maker input, and consequentiality," Journal of Environmental Economics and Management, Elsevier, vol. 58(3), pages 338-345, November.
    38. John Rolfe & Jill Windle, 2010. "Do values for protecting iconic assets vary across populations? A Great Barrier Reef case study," Environmental Economics Research Hub Research Reports 1065, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
    39. Schaafsma, Marije & Brouwer, Roy & Rose, John, 2012. "Directional heterogeneity in WTP models for environmental valuation," Ecological Economics, Elsevier, vol. 79(C), pages 21-31.
    40. Peter Hills & Peter Roberts, 2001. "Political Integration, Transboundary Pollution and Sustainability: Challenges for Environmental Policy in the Pearl River Delta Region," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 44(4), pages 455-473.
    41. Zhongmin, Xu & Guodong, Cheng & Zhiqiang, Zhang & Zhiyong, Su & Loomis, John, 2003. "Applying contingent valuation in China to measure the total economic value of restoring ecosystem services in Ejina region," Ecological Economics, Elsevier, vol. 44(2-3), pages 345-358, March.
    42. Marije Schaafsma & Roy Brouwer & Alison Gilbert & Jeroen van den Bergh & Alfred Wagtendonk, 2013. "Estimation of Distance-Decay Functions to Account for Substitution and Spatial Heterogeneity in Stated Preference Research," Land Economics, University of Wisconsin Press, vol. 89(3), pages 514-537.
    43. Nick Hanley & David Bell & Begona Alvarez-Farizo, 2003. "Valuing the Benefits of Coastal Water Quality Improvements Using Contingent and Real Behaviour," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(3), pages 273-285, March.
    44. Ronald J. Sutherland & Richard G. Walsh, 1985. "Effect of Distance on the Preservation Value of Water Quality," Land Economics, University of Wisconsin Press, vol. 64(3), pages 281-291.
    45. Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, vol. 59(4), pages 251-278, October.
    46. repec:oup:restud:v:84:y::i:1:p:464-502. is not listed on IDEAS
    47. Robert J. Johnston & RStephen K. Swallow & Dana Marie Bauer, 2002. "Spatial Factors and Stated Preference Values for Public Goods: Considerations for Rural Land Use," Land Economics, University of Wisconsin Press, vol. 78(4), pages 481-500.
    48. Kahneman, Daniel, 1992. "Reference points, anchors, norms, and mixed feelings," Organizational Behavior and Human Decision Processes, Elsevier, vol. 51(2), pages 296-312, March.
    49. Harrison, Glenn W. & Rutström, E. Elisabet, 2008. "Experimental Evidence on the Existence of Hypothetical Bias in Value Elicitation Methods," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 81, pages 752-767, Elsevier.
    50. Tait, Peter & Baskaran, Ramesh & Cullen, Ross & Bicknell, Kathryn, 2012. "Nonmarket valuation of water quality: Addressing spatially heterogeneous preferences using GIS and a random parameter logit model," Ecological Economics, Elsevier, vol. 75(C), pages 15-21.
    51. John B. Loomis, 2000. "Vertically Summing Public Good Demand Curves: An Empirical Comparison of Economic versus Political Jurisdictions," Land Economics, University of Wisconsin Press, vol. 76(2), pages 312-321.
    52. Desvousges, William H. & Smith, V. Kerry & Fisher, Ann, 1987. "Option price estimates for water quality improvements: A contingent valuation study for the monongahela river," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 248-267, September.
    53. Ni, Debing & Wang, Yuntong, 2007. "Sharing a polluted river," Games and Economic Behavior, Elsevier, vol. 60(1), pages 176-186, July.
    54. Joseph Little & Robert Berrens, 2004. "Explaining Disparities between Actual and Hypothetical Stated Values: Further Investigation Using Meta-Analysis," Economics Bulletin, AccessEcon, vol. 3(6), pages 1-13.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Han-Shen Chen, 2020. "The Construction and Validation of a Sustainable Tourism Development Evaluation Model," IJERPH, MDPI, vol. 17(19), pages 1-20, October.
    2. Cheng, Jinhua & Dai, Sheng & Ye, Xinyue, 2016. "Spatiotemporal heterogeneity of industrial pollution in China," China Economic Review, Elsevier, vol. 40(C), pages 179-191.
    3. Han-Shen Chen, 2019. "Establishment and Application of an Evaluation Model for Orchid Island Sustainable Tourism Development," IJERPH, MDPI, vol. 16(5), pages 1-16, March.
    4. Han-Shen Chen & Chu-Wei Chen, 2019. "Economic Valuation of Green Island, Taiwan: A Choice Experiment Method," Sustainability, MDPI, vol. 11(2), pages 1-17, January.
    5. Manhong Shen & Yongliang Yang, 2017. "The Water Pollution Policy Regime Shift and Boundary Pollution: Evidence from the Change of Water Pollution Levels in China," Sustainability, MDPI, vol. 9(8), pages 1-22, August.
    6. Guanyi Yu & Chunliang Xiu & Changsong Zhao & Zhengliang Ding, 2018. "Strategic Cross-Border Water Pollution in Songliao Basin," Sustainability, MDPI, vol. 10(12), pages 1-19, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    2. Klaus Glenk & Robert J. Johnston & Jürgen Meyerhoff & Julian Sagebiel, 2020. "Spatial Dimensions of Stated Preference Valuation in Environmental and Resource Economics: Methods, Trends and Challenges," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 215-242, February.
    3. Robert J. Johnston & Elena Y. Besedin & Benedict M. Holland, 2019. "Modeling Distance Decay Within Valuation Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(3), pages 657-690, March.
    4. Nielsen, Anne Sofie Elberg & Lundhede, Thomas Hedemark & Jacobsen, Jette Bredahl, 2016. "Local consequences of national policies - A spatial analysis of preferences for forest access reduction," Forest Policy and Economics, Elsevier, vol. 73(C), pages 68-77.
    5. Holland, Benedict M. & Johnston, Robert J., 2014. "Spatially-Referenced Choice Experiments: Tests of Individualized Geocoding in Stated Preference Questionnaires," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170191, Agricultural and Applied Economics Association.
    6. Tomas Badura & Silvia Ferrini & Michael Burton & Amy Binner & Ian J. Bateman, 2020. "Using Individualised Choice Maps to Capture the Spatial Dimensions of Value Within Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(2), pages 297-322, February.
    7. Jørgensen, Sisse Liv & Olsen, Søren Bøye & Ladenburg, Jacob & Martinsen, Louise & Svenningsen, Stig Roar & Hasler, Berit, 2013. "Spatially induced disparities in users' and non-users' WTP for water quality improvements—Testing the effect of multiple substitutes and distance decay," Ecological Economics, Elsevier, vol. 92(C), pages 58-66.
    8. Bakhtiari, Fatemeh & Jacobsen, Jette Bredahl & Thorsen, Bo Jellesmark & Lundhede, Thomas Hedemark & Strange, Niels & Boman, Mattias, 2018. "Disentangling Distance and Country Effects on the Value of Conservation across National Borders," Ecological Economics, Elsevier, vol. 147(C), pages 11-20.
    9. Holland, Benedict M. & Johnston, Robert J., 2015. "Capturing More Relevant Measures of Spatial Heterogeneity in Stated Preference Willingness to Pay: Using an Iterative Grid Search Algorithm to Quantify Proximate Environmental Impacts," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205450, Agricultural and Applied Economics Association.
    10. Holland, Benedict M. & Johnston, Robert J., 2017. "Optimized quantity-within-distance models of spatial welfare heterogeneity," Journal of Environmental Economics and Management, Elsevier, vol. 85(C), pages 110-129.
    11. Robert J. Johnston & Elena Y. Besedin & Ryan Stapler, 2017. "Enhanced Geospatial Validity for Meta-analysis and Environmental Benefit Transfer: An Application to Water Quality Improvements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 343-375, October.
    12. Norton, Daniel & Hynes, Stephen, 2018. "Estimating the Benefits of the Marine Strategy Framework Directive in Atlantic Member States: A Spatial Value Transfer Approach," Ecological Economics, Elsevier, vol. 151(C), pages 82-94.
    13. Yamaguchi, Rintaro & Shah, Payal, 2020. "Spatial discounting of ecosystem services," Resource and Energy Economics, Elsevier, vol. 62(C).
    14. Robert Johnston & Mahesh Ramachandran, 2014. "Modeling Spatial Patchiness and Hot Spots in Stated Preference Willingness to Pay," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(3), pages 363-387, November.
    15. Schaafsma, Marije & Brouwer, Roy & Rose, John, 2012. "Directional heterogeneity in WTP models for environmental valuation," Ecological Economics, Elsevier, vol. 79(C), pages 21-31.
    16. Tagliafierro, C. & Boeri, M. & Longo, A. & Hutchinson, W.G., 2016. "Stated preference methods and landscape ecology indicators: An example of transdisciplinarity in landscape economic valuation," Ecological Economics, Elsevier, vol. 127(C), pages 11-22.
    17. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    18. Day, Brett & Bateman, Ian & Binner, Amy & Ferrini, Silvia & Fezzi, Carlo, 2019. "Structurally-consistent estimation of use and nonuse values for landscape-wide environmental change," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    19. Jae Kim & Seung-Nam Kim & Soogwan Doh, 2015. "The distance decay of willingness to pay and the spatial distribution of benefits and costs for the ecological restoration of an urban branch stream in Ulsan, South Korea," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 835-853, May.
    20. Valeria M. Toledo‐Gallegos & Jed Long & Danny Campbell & Tobias Börger & Nick Hanley, 2021. "Spatial clustering of willingness to pay for ecosystem services," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 673-697, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:36:y:2015:i:c:p:101-130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/chieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.