Is the Income Elasticity of Environmental Improvements Less Than One?

Author: Kriström B.  

Publisher: Springer Publishing Company

ISSN: 0924-6460

Source: Environmental and Resource Economics, Vol.7, Iss.1, 1996-01, pp. : 45-55

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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.