Journal of Korean Society of Water and Wastewater (상하수도학회지)

The Korean Society of Water and Wastewater (대한상하수도학회)
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Estimating willingness-to-pay for the tap water quality improvement in Busan using contingent valuation method

조건부가치측정법을 이용한 부산시 상수도 수질개선에 대한 WTP 추정

  • Pyo, Heedong (Dept. of Marine Business and Economics, Pukyong National Univ.) ;
  • Choo, Jae Wook (Dept. of Economics, Pukyong National Univ.)
  • 표희동 (부경대학교 해양산업경영학과) ;
  • 추재욱 (부경대학교 대학원 자원경제학과)
  • Received : 2014.08.19
  • Accepted : 2014.10.15
  • Published : 2014.10.15
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Abstract

The paper is to estimate willingness-to-pay (WTP) for tap water quality improvement in Busan, using parametric approach in contingent valuation method(CVM). For parametric approach linear logit model and log logit model are employed in double-bounded dichotomous choice format of CVM. For the reliability and the validity of contingent valuation method a survey was conducted for 665 respondents, who were sampled by stratified random sampling method, by personal interview method. The result of mean WTP for the tap water quality improvement in Busan was estimated to be 3,687 won and 3,660 won per month per household, while median WTP being 1,884 won and 1,892 won per month per household, respectively by linear logit model and log logit model. Provided that our sample is broadly representative of the Busan's population, an estimate of the annual aggregated benefit of residential water improvement for all Busan households is approximately 29.7 billion won to 29.8 billion won based on median WTP.

Keywords

References

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