Willingness to pay and demand elasticities for two national parks: empirical evidence from two surveys in Pakistan

Using survey-based data approach for modeling the demand for environmental goods/resources, this study estimates income and price elasticities of demand for improved environmental quality of two National Parks in Northern Pakistan. The study uses data from two studies. The estimates indicate that improved environmental quality effects can be described as a luxury and an ordinary and price elastic service. Confidence intervals show however that the classification as a luxury is not statistically significant. Income elasticities of willingness to pay are estimated for a broad range of environmental services. The study finds that income and willingness to pay vary directly and significantly. The elasticity estimates, in general, are greater than zero, but less than unity. The study concludes that environmental improvements are more beneficial to low-income groups than for high-income groups.

Himayatullah KhanEmail: