Higher water tariffs for less river pollution—evidence from Min River and Fuzhou City, People’s Republic of China

Upstream nonpoint source pollution has become a significant threat to urban drinking water safety in the People’s Republic of China. Payment for environmental services (PES) is seen as a promising mechanism to deal with the situation. In designing a sound PES, it is crucial to determine the willingness to pay (WTP) of urban beneficiaries for upstream water pollution controls. An analysis of household data from a contingent valuation survey conducted in Fuzhou in 2009 reveals that household income is the most important factor in determining respondents’ positions on water tariff increases as well as WTP under a PES scheme. Mean WTP varies from Yuan (CNY) –0.45 per cubic meter to CNY0.86 for different income groups. The overall mean WTP is estimated to be CNY0.21, which is equivalent to a 10% increase in the current tariff, with the 95% confidence interval at (CNY0.12, CNY0.31). The point estimate implies a total annual WTP of Fuzhou City equal to CNY22 million, which is 27% less than the contribution of Fuzhou to an ongoing government-financed PES. However, with continuous water tariff increases, affordability among low-income households might arise as an issue. This calls for subsidies targeting low-income households to be incorporated in water tariff reform.water tariff, river pollution, upstream nonpoint source pollution, payment for environmental services, willingness to pay, Min River, Fuzhou City, China

As Low Birth Weight Babies Grow, Can 'Good' Parents Buffer this Adverse Factor? A Research Note.

This research note combines two national Taiwanese datasets to investigate the relationship between low birth weight (LBW) babies, their family background and their future academic outcomes. We find that LBW is negatively correlated with the probability of such children attending university at the age of 18; however, when both parents are college or senior high school graduates, such negative effects may be partially offset. We also show that discrimination against daughters does occur, but only in those cases where the daughters were LBW babies. Moreover, high parental education (HPE) can only buffer the LBW shock among moderately-LBW children (as compared to very-LBW children) and full term-LBW children (as compared to preterm-LBW children).