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This paper analyzes citizens' perception of past environmental damage and liability through the estimation of willingness to pay for the implementation of decontamination and land rehabilitation of the damaged site. The paper takes the Russian Federation as a case of country in transition and focuses on Kemerovo region as one of the most affected regions in the country. The major analytical tool employed in the study is choice experiment, data for which was collected through a household survey. Primary conclusion of the analysis is that citizens' willingness to financially support the implementation of environmental quality improvement projects is not high though individuals in the studied area express high level of concern over the issue in focus.

The objective of this paper is to examine cost allocation in relation to remediating environmental liability issues in Russia, where significant environmental damages, continuing from the Soviet era, present serious impediments to pursuing sustainable development. The research attempts to highlight citizens' preferences for remediating facilities and sites with environmental liabilities, and elicits preference differences among citizens using choice experiment methods. Intergenerational issues are involved in addressing environmental liabilities in transition economies because the causes and effects are spread among generations. Therefore, evaluating citizens' preferences provides more policy implications for future remediation initiatives. The econometric analysis reveals that citizens demonstrate positive preferences for reducing pollution of drinking water and soil decontamination. The research also suggests that the households with higher incomes, older household heads (or spouses), and more young children have higher preferences for remediating environmental liabilities in Russia. Estimation of the marginal willingness to pay (MWTP) for age and income segments of the households allows the government to determine a suitable taxation policy. The findings provide new insights on cost allocation in relation to remediating environmental damages in transition economies that have suffered from these serious environmental legacies.