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Application of Benefit Transfer Method to Estimate the Willingness-to-pay in Planning the Construction of the Integrated Sewerage System at the Catchment Areas of Dams  

Jeong, Dong-Hwan (National Institute of Environmental Research)
Jin, Young-Sun (Business School, Korea University)
Park, Kyoo-Hong (Department of Civil Engineering, Chung-Ang University)
Publication Information
Journal of Korean Society of Environmental Engineers / v.28, no.1, 2006 , pp. 74-80 More about this Journal
Abstract
Benefit transfer is a method, which obtains an estimate for the economic valuation of non-marketed commodities at a given site through the analysis of studies that have been previously carried out to value similar commodities at a different location. The objective of this study was to estimate benefit transfer values for the construction of the integrated sewerage system in the catchment area of dams in Korea. For pooled data analysis, five models were suggested in this study. Among five models, model 2 showed only 6 to 7% errors when the willingness-to-pay(WTP) predicted in the policy-site, Dam Soyang was compared with that estimated using contingent valuation method(CVM) in the study-sites, Dams Namgang, Hapcheon, and Daecheong. However, the WTP estimate predicted by model 1 showed the absolute errors of 42 to 47% when it was compared with WTP estimated using CVM in Dams Andong and Imha. It seemed that residents of Dams Andong and Imha have feeling of being victimized since two dams were constructed very adjacently, the upstream area was designated as drinking water source protection zone, and thereafter their developmental economical actions have been significantly restricted.
Keywords
Benefit Transfer; Contingent Valuation Method; Willingness-to-pay; Pooled Data Analysis;
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