Publication: Valuing Water Quality Improvement in China : A Case Study of Lake Puzhehei in Yunnan Province
Loading...
Published
2011-08-01
ISSN
Date
2012-03-19
Author(s)
Editor(s)
Abstract
While polluted surface water is encountered across most of China, few economic valuation studies have been conducted on water quality changes. Limited information about the economic values associated with those potential water quality improvements or deteriorations is a disadvantage for making proper choices in water pollution control and clean-up activities. This paper reports an economic valuation study conducted in Yunnan, China, which aims to estimate the total value of a real investment project to improve the water quality of Lake Puzhehei by one grade level. Located in Qiubei County, which is far from large cities, the lake has been experiencing fast water quality deterioration in the past years. A conservative estimation strategy shows that on average a household located in Qiubei County is willing to pay about 30 yuan per month continuously for 5 years for water quality improvement, equivalent roughly to 3 percent of household income. The elasticity of willingness-to-pay with respect to income is estimated to be 0.21. The economic rate of return of the proposed project is estimated to be 18 percent, indicating a strong demand and high efficiency of investment in water quality improvement in China. This study also demonstrates that previous knowledge about water quality changes and the project may have a significant positive impact on people's valuation, and that the interviewer effect on valuation can be negative.
Link to Data Set
Citation
“Wang, Hua; Shi, Yuyan; Kim, Yoonhee; Kamata, Takuya. 2011. Valuing Water Quality Improvement in China : A Case Study of Lake Puzhehei in Yunnan Province. Policy Research working paper ; no. WPS 5766. © World Bank. http://hdl.handle.net/10986/3528 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication Global Poverty Revisited Using 2021 PPPs and New Data on Consumption(Washington, DC: World Bank, 2025-06-05)Recent improvements in survey methodologies have increased measured consumption in many low- and lower-middle-income countries that now collect a more comprehensive measure of household consumption. Faced with such methodological changes, countries have frequently revised upward their national poverty lines to make them appropriate for the new measures of consumption. This in turn affects the World Bank’s global poverty lines when they are periodically revised. The international poverty line, which is based on the typical poverty line in low-income countries, increases by around 40 percent to $3.00 when the more recent national poverty lines as well as the 2021 purchasing power parities are incorporated. The net impact of the changes in international prices, the poverty line, and new survey data (including new data for India) is an increase in global extreme poverty by some 125 million people in 2022, and a significant shift of poverty away from South Asia and toward Sub-Saharan Africa. The changes at higher poverty lines, which are more relevant to middle-income countries, are mixed.Publication Intergenerational Income Mobility around the World(Washington, DC: World Bank, 2025-07-09)This paper introduces a new global database with estimates of intergenerational income mobility for 87 countries, covering 84 percent of the world’s population. This marks a notable expansion of the cross-country evidence base on income mobility, particularly among low- and middle-income countries. The estimates indicate that the negative association between income mobility and inequality (known as the Great Gatsby Curve) continues to hold across this wider range of countries. The database also reveals a positive association between income mobility and national income per capita, suggesting that countries achieve higher levels of intergenerational mobility as they grow richer.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Higher Education Expansion and Firm Organization(Washington, DC: World Bank, 2025-09-17)This paper investigates the impact of higher education expansion on firm performance in developing countries. It focuses on the significant expansion of higher education in Brazil between 2000 and 2012, which substantially increased higher education enrollment and graduation rates, thereby reducing the costs of hiring college-educated workers. Building on the theory of knowledge-based hierarchies and using a difference-in-differences approach and matching techniques, the paper finds that the surge in skilled labor supply led to a rise in the proportion of college-educated workers within firms in the treated microregions. This increase was accompanied by an increased prob-ability of firms adding knowledge hierarchies, followed by a rise in productivity and an increased likelihood of export. The findings suggest that policies affecting the cost and accessibility of hiring professionals and managers can significantly influence firms’ organizational structures, with implications for firm performance and productivity.Publication The Exposure of Workers to Artificial Intelligence in Low- and Middle-Income Countries(Washington, DC: World Bank, 2025-02-05)Research on the labor market implications of artificial intelligence has focused principally on high-income countries. This paper analyzes this issue using microdata from a large set of low- and middle-income countries, applying a measure of potential artificial intelligence occupational exposure to a harmonized set of labor force surveys for 25 countries, covering a population of 3.5 billion people. The approach advances work by using harmonized microdata at the level of individual workers, which allows for a multivariate analysis of factors associated with exposure. Additionally, unlike earlier papers, the paper uses highly detailed (4 digit) occupation codes, which provide a more reliable mapping of artificial intelligence exposure to occupation. Results within countries, show that artificial intelligence exposure is higher for women, urban workers, and those with higher education. Exposure decreases by country income level, with high exposure for just 12 percent of workers in low-income countries and 15 percent of workers in lower-middle-income countries. Furthermore, lack of access to electricity limits effective exposure in low-income countries. These results suggest that for developing countries, and in particular low-income countries, the labor market impacts of artificial intelligence will be more limited than in high-income countries. While greater exposure to artificial intelligence indicates larger potential for future changes in certain occupations, it does not equate to job loss, as it could result in augmentation of worker productivity, automation of some tasks, or both.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Municipal Solid Waste Management in Small Towns : An Economic Analysis Conducted in Yunnan, China(2011-08-01)Municipal solid waste management continues to be a major challenge for local governments in both urban and rural areas across the world, and one of the key issues is their financial constraints. Recently an economic analysis was conducted in Eryuan, a poor county located in Yunnan Province of China, where willingness to pay for an improved solid waste collection and treatment service was estimated and compared with the project cost. This study finds that the mean willingness to pay is about 1 percent of household income and the total willingness to pay can basically cover the total cost of the project. The analysis also shows that the poorest households in Eryuan are not only willing to pay more than the rich households in terms of income percentage in general, but also are willing to pay no less than the rich in absolute terms where no solid waste services are available; the poorest households have stronger demand for public solid waste management services while the rich have the capability to take private measures when public services are not available.Publication The Cost of Environmental Degradation : Case Studies from the Middle East and North Africa(World Bank, 2010-08-01)Environmental degradation is costly, to individuals, to societies, and to the environment. This book, edited by Lelia Croitoru and Maria Sarraf, makes these costs clear by examining a number of studies carried out over the past few years by the World Bank's Middle East and North Africa region. Even more important than estimating the monetary cost of environmental degradation (COED), however, are the clear guidance and policy implications derived from these findings. This volume presents a new approach to estimating the impacts of environmental degradation. In the past, when government officials asked researchers the simple question how large are the impacts of environmental degradation? The response was often an emphatic 'large!' a rather imprecise number. The strength of this work is that it actually quantifies in economic terms how large is 'large' and thereby gains the attention of decision makers and offers specific insights for improved policy making. Finally, this book demonstrates the benefits of doing a coordinated, regional COED analysis that builds on the country-level studies. This two-tiered approach produces important synergies, in terms of both the methodologies used and the lessons learned.Publication Policy and Investment Priorities to Reduce Environmental Degradation of the Lake Nicaragua Watershed (Cocibolca) : Addressing Key Environmental Challenges(Washington, DC, 2013-01)This study, policy and investment priorities to reduce environmental degradation of the Lake Nicaragua watershed, has assessed the sources and the magnitude of the pressures that threaten Lake Cocibolca. It was accomplished by applying a hydrological and land use model to the lake's watershed and by conducting additional estimates of nutrients generated from wastewater sources and tilapia farming. The study has confirmed that sediment loads are very high, and has estimated their magnitude in each sub-watershed. The key results of the study are the estimation of sedimentation levels in the watershed and the identification of erosion hotspots. The Lake Cocibolca watershed is a globally unique cradle of biodiversity with major importance not only to the global and local environment, but also to the 750,000 people living within its boundaries. Several fish species are endemic to the lake, and the watershed's location within the Mesoamerican Biological Corridor has made it a meeting ground for fish, bird and mammal species from North and South America. Apart from its importance for fishing and recreation industries, the lake is beginning to be used as a source of water supply for some coastal towns; its role as a source of drinking water may grow in the future. Lake Cocibolca and its watershed are under pressure from multiple sources but, in the absence of reliable monitoring information, the extent of the environmental degradation is unclear. Environmental deterioration in the watershed is high on the government's agenda.Publication Downstream Impacts of Water Pollution in the Upper Citarum River, West Java, Indonesia : Economic Assessment of Interventions to Improve Water Quality(Asian Development Bank, Manila and World Bank, Washington, DC, 2013-10)The Economics of Sanitation Initiative (ESI) of the World Bank's Water and Sanitation Program (WSP) commenced in East Asia and the Pacific region in 2006 to generate and disseminate economic evidence on sanitation. A phase one study in five countries of the region, including Indonesia, assessed the economic costs of inadequate sanitation to raise the profile of sanitation nationally. A phase two study compared the costs with the benefits of a range of sanitation intervention options in five physical locations in Indonesia, to assist decision makers in their choice of sanitation technology and delivery method. Since the demonstrated successes of ESI in the East Asia and Pacific region, ESI has become a global flagship program of WSP. However, some economic benefits have not been fully evaluated in monetary terms because of methodological difficulties in valuing nonmarket impacts, the paucity of underlying data sets, and the difficulties inherent in attributing observed impacts to poor sanitation. Among these hard-to-measure benefits are the impacts of poor sanitation on water resources. Hence, the purpose of this study was to develop and pilot test a specific methodology for valuing a wider range of impacts related to water resource pollution in Indonesia.Publication Guide for Wastewater Management in Rural Villages in China(World Bank, Washington, DC, 2011-12)There is an urgent need to provide practical guidelines for Chinese decision makers and officials to better understand the key issues and constraints related to rural wastewater management and to identify feasible solutions and tools to improve the performance and sustainability of these projects. To address these needs, the World Bank has developed this guide for wastewater management in rural villages in China. The Guide is intended to be a useful resource for Chinese policy makers and practitioners. It includes a review of historical and current policies and practices related to wastewater management in rural China. The Guide outlines a framework and strategies for establishing municipal and village level wastewater management programs. The overall objective of the guide is to identify key issues and to present effective strategies and approaches to implement sustainable wastewater management programs at the local jurisdictions in order to improve rural sanitation in China. A key objective of the guide is to present institutional, programmatic and technical guidelines that can be adopted by local jurisdictions, forming the basis for consistent, affordable, practical, and effective sanitation project planning, design, implementation, and operations.
Users also downloaded
Showing related downloaded files
Publication What Does MFN Trade Mean for India and Pakistan? Can MFN be a Panacea?(World Bank, Washington, DC, 2013-06)India and Pakistan, the two largest economies in South Asia, share a common border, culture and history. Despite the benefits of proximity, the two neighbors have barely traded with each other. In 2011, trade with Pakistan accounted for less than half a percent of India's total trade, whereas Pakistan's trade with India was 5.4 percent of its total trade. However, the recent thaw in India-Pakistan trade relations could signal a change. Pakistan has agreed to grant most favored nation status to India. India has already granted most favored nation status to Pakistan. What will be the gains from trade for the two countries? Will they be inclusive? Is most favored nation status a panacea? Should the granting of most favored nation status be accompanied by improvements in trade facilitation, infrastructure, connectivity, and logistics to reap the true benefits of trade and to promote shared prosperity? This paper attempts to answer these questions. It examines alternative scenarios on the gains from trade and it finds that what makes most favored nation status work is the trade facilitation that surrounds it. The results of the general equilibrium simulation indicate Pakistan's most favored nation status to India would generate larger benefits if it were supported by improved connectivity and trade facilitation measures. In other words, gains from trade would be small in the absence of improved connectivity and trade facilitation. The idea of trade facilitation is simple: implement measures to reduce the cost of trading across borders by improving infrastructure, institutions, services, policies, procedures, and market-oriented regulatory systems. The returns can be huge, even with modest resources and limited capacity. The dividends of trade facilitation can be shared by all.Publication Review of the Tax System in the Kyrgyz Republic(Washington, DC: World Bank, 2024-07-05)Tax revenues to GDP ratio in the Kyrgyz Republic is higher than most lower middle income countries at above 28 percent of GDP in 2022, but complex tax structure, narrow base and remaining weaknesses in tax administration pose risks to sustainability and create unequal tax burden across taxpayers. Revenue performance in 2021-23 improved significantly due to improvements in tax administration, but significant share of the improved tax collection is contributed by VAT on imports which is likely attributed to trade diversion after imposition of trade sanctions on Russia. The transit trade driven by the sanctions has increased substantially during 2022-2023 period. If the relative share of imports would have stayed at the actual 2021 level (64.5 percent), we estimate that the transit trade contributed to increase in VAT revenues of KGS 25.2 billion (equivalent of 2.6 percent of GDP) in 2022, and an estimated KGS 37.9 billion in additional VAT revenues (3.3 percent of estimated GDP) in 2023. These one-off exceptional revenues should be isolated and treated separately when making medium-to-longer run tax revenue forecasts and when considering tax policies. This report looks into three major issues, tax gap and how it could be reasonably reduced over the medium term; needed tax policy changes; and how administration provisions in tax legislation can support the same level of tax revenues, with more equitable distribution of tax burden promoting growth and lowering compliance costs. The report touches briefly on tax administration key issues, as ongoing tax administration reform agenda supported by the World Bank funded project is currently underway.Publication Vietnam(World Bank, Hanoi, 2020-05-01)Following from Vietnam’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in late 2018 and its effectiveness from January 2019, and the European Parliament’s recent approval of the European Union-Vietnam Free Trade Agreement (EVFTA) and its subsequent planned ratification by the National Assembly in May 2020, Vietnam has further demonstrated its determination to be a modern, competitive, open economy. As the COVID-19 (Coronavirus) crisis has clearly shown, diversified markets and supply chains will be key in the future global context to managing the risk of disruptions in trade and in supply chains due to changing trade relationships, climate change, natural disasters, and disease outbreaks. In those regards, Vietnam is in a stronger position than most countries in the region. The benefits of globalization are increasingly being debated and questioned. However, in the case of Vietnam, the benefits have been clear in terms of high and consistent economic growth and a large reduction in poverty levels. As Vietnam moves to ratify and implement a new generation of free trade agreements (FTAs), such as the CPTPP and EVFTA, it is important to clearly demonstrate, in a transparent manner, the economic gains and distributional impacts (such as sectoral and poverty) from joining these FTAs. In the meantime, it is crucial to highlight the legal gaps that must be addressed to ensure that national laws and regulations are in compliance with Vietnam’s obligations under these FTAs. Readiness to implement this new generation of FTAs at both the national and subnational level is important to ensure that the country maximizes the full economic benefits in terms of trade and investment. This report explores the issues of globalization and the integration of Vietnam into the global economy, particularly through implementation of the EVFTA.Publication Economy Profile of United States(World Bank, Washington, DC, 2017-11-01)Doing Business 2018 is the 15th in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. This economy profile presents the Doing Business indicators for United States. Doing Business presents quantitative indicators on business regulation and the protection of property rights that can be compared across 190 economies; for 2018 United States ranks 6. Doing Business measures aspects of regulation affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation, which is not included in this year’s ranking. Data in Doing Business 2018 are current as of June 1, 2017. The indicators are used to analyze economic outcomes and identify what reforms of business regulation have worked, where and why.Publication Firm-Level Technology Adoption in Vietnam(World Bank, Washington, DC, 2021-03)This paper describes the results of a new firm survey to measure technology use and adoption implemented prior to the COVID-19 pandemic in Vietnam. It analyzes the use and adoption of technology among Vietnamese firms and identifies some of the key barriers to adoption and diffusion. The analysis offers new and important stylized facts on firm-level use of technologies. First, although access to the internet is almost universal in Vietnam, firms had low digital readiness to face the COVID-19 pandemic; and the share of establishments with their own website, social media, and cloud computing is still small. Second, the use of Industry 4.0 technologies is incipient. Third, the technology gap with the use of frontier technologies in some general business functions, such as quality control, production planning, sales, and sourcing and procurement, is large. Fourth, the manufacturing sector faces the largest technological gap, larger than services and agricultural firms. The analysis of the main barriers and drivers to technology adoption and use shows the importance of good management quality for technology adoption, and that there is a technology premium associated with exporting activities. Finally, the analysis also shows that firms are largely unaware of the available public policy support for technology upgrading.