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Is the income elasticity of environmental improvements less than one?

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  • Bengt Kristrom
  • Pere Riera

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. Copyright Kluwer Academic Publishers 1996

Suggested Citation

  • Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January.
    • Handle: RePEc:kap:enreec:v:7:y:1996:i:1:p:45-55
    DOI: 10.1007/BF00420426
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    References listed on IDEAS

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