This paper employs the Russia Longitudinal Monitoring Survey (RLMS) to examine changes in Russian households' averting behavior against air and drinking water pollution and their willingness to pay additional money to the federal or local government for cleaner environment over the period 1994–1998.
The empirical analysis demonstrates that the households income and the local environmental pollution do influence the respondent's
decision on both averting behavior and his or her willingness to pay for cleaner air and drinking water. Also, the individual's life
expectancy, living conditions, and knowledge about the negative impact of polluted environment (higher or serious illness thought to
be caused by pollution in the respondent's family) are found to be significant determinants of the probability of the willingness to pay for environmental goods.