Browse > Article
http://dx.doi.org/10.7857/JSGE.2016.21.6.156

The Total Economic Value of Soil in Korea  

Park, So-Yeon (Department of Energy Policy, Graduate School of Energy &Environment, Seoul National University of Science & Technology)
Yoo, Seoung-Hoon (Department of Energy Policy, Graduate School of Energy &Environment, Seoul National University of Science & Technology)
Publication Information
Journal of Soil and Groundwater Environment / v.21, no.6, 2016 , pp. 156-168 More about this Journal
Abstract
The Korean government is planning to invest a lot of funds for conservation of the soil. Accordingly, it needs quantitative information on the soil. This paper attempts to analyze the total value of soil quantitatively: the total economic value of soil can be divided into use value and non-use value. To this end, we apply a replacement cost method (RCM) and contingent valuation method (CVM). Especially, CVM is most widely used to measure the non-use value such as environment goods. We employed the one-and-one-half-bounded dichotomous choice (OOHBDC) for willingness to pay (WTP) elicitation and a spike model. The monthly mean WTP was estimated to be KRW 3,949 per household for the next 10 years, which is statistically significant at the 1% level. Expanding the value to the relevant population gives us KRW 897.9 billion per year and as of the end of 2015, the non-use value of soil was assessed to be KRW 838.6 billion. Meanwhile, use value is subdivided into direct use value and indirect use value. This value was calculated KRW 3,277 trillion and KRW 51.8 trillion, respectively. As a result, total economic value of soil is estimated to be KRW 3,330 trillion in Korea.
Keywords
Soil; Economic value; Use value; Non-use value; Contingent valuation;
Citations & Related Records
Times Cited By KSCI : 6  (Citation Analysis)
연도 인용수 순위
1 Kristrom, B., 1997, Spike models in contingent valuation. Am. J. Agric. Econ., 79(3), 1013-1023.   DOI
2 Kim, J.H., Kim, R.H., Yoon, H.J., Lee, S.W., Choi, H.T., Kim, J.J., Park, C.R., and Kim K.D., 2012, Valuation of nonmarket forest resources, The Journal of Korean Institute of Forest Recreation, 16(4), 9-18.
3 Korea Water Resources Corporation, 2014, The estimation of Benefits for Recreational Water and the Improvement of System.
4 KONETIC, 2014 Current condition of operation of waste incineration facility, https://konetic.or.kr
5 Lee, C.K., 2013, Estimating the preservation value of Dokdo: using two stage contingent valuation method, Journal of Tourism Sciences, 37(4), 117-139.
6 Lee, S.W., Jeon, C.J., Yoo, K.M., Choi. J.H., and Kim, H.J., 2016, Selective removal of arsenic compounds from the contaminated paddy soil in China using froth flotation technique, J. Korean Soc. Environ. Eng., 38(7).
7 Lim, S.J., Oh, Y.T., Jo, Y.S., Ro, J.H., Choi, G.H., Yang, J.Y., and Park, B.J, 2016, Persistent organic pollutants (POPs) residues in greenhouse soil and strawberry organochlorine pesticides, Korean J. Environ. Agric., 35(1), 6-14.   DOI
8 McConnell, K.E., 1990, Models for referendum data: the structure of discrete choice models for contingent valuation. J. Environ. Econ. Manag., 18(1), 19-34.   DOI
9 McFadden, D., 1994, Contingent valuation and social choice, Am. J. Agric. Econ., 76, 689-708.   DOI
10 Maddison, D., 2000, A hedonic analysis of agricultural land prices in England and Wales, Eur. Rev. Agric. Econ., 27(4), 519-532.   DOI
11 Ministry of Environment, 2008, Research on value evaluations and examples for soil and groundwater.
12 Ministry of Environment, 2009, The foundation plan of soil conservation.
13 Son, H.G. and Kim, S.B., 2010, A study on conservative value evaluation for landscape of the rural toruism villages, Journal of Agricultural Extension & Community Development, 17(4), 897-918.
14 Ministry of Environment, 2010, Research on progressive methodology for economic value evaluation of soil and groundwater.
15 Ministry of Environment, 2015, Study of economic valuation of soil remediation technology.
16 Oh, J.I., Jin, G.N., and Lee, H.J., 2016, Soil pollution and contaminated soil management of the public housing agency in residential land development, J. Korean Soc. Envrion, Eng, 38(7), 377-386.   DOI
17 Pimentel, D., Harvey, C., Resosudarmo, P., Sinclair, K., Kurz, D., McNair, M., Crist, S. Shprita, L. Fitton, L. Saffouri, R. and Blair, R., 1995, Environmental and economic costs of soil erosion and conservation benefits. Science-AAAS-Weekly Paper Edition, 267(5201), 1117-1122.
18 Son, M.S., Kim, B-H. S., and Lee, H.S., 2009, Economic valuation method for soil and groundwater, KRSA, 25(2), 63-82.
19 Shim, G.W., 2012, Estimating the economic value of environmental resources for systematic national park management : a case of Jirisan national park, 16(1), 121-126.
20 Yoon, J.K., Kim, R.Y., Kim, J.I., Noh, H.J., Yu1, S.J., Kim, T.S., Lee, M.G., Yun, D.G., Lee, H.G., Kim, I.J., and Park, G.H., 2015, Characteristics of heavy metals (Ba, Cr) distribution in soil, J. Soil Groundw. Environ, 20(7), 61-69.   DOI
21 Yang, J.H., Park, S.H., Yoo, K.J., Kim, T.H., and Hwang, S.I., 2016, Strategic environmental impact assessment for development basic plan considering complex characteristics of soil-focused on the bogeumjari housing supply plan and an urban management plan., J. Environ. Impact Assess., 25(2), 155-164.   DOI
22 Ministry of Environment, 1996, A guidebook of soil environment conservation.
23 Colombo, S., Calatrava-Requena, J., and Hanley, N., 2003, The economic benefits of soil erosion control: an application of the contingent valuation method in the Alto Genil basin of southern Spain, J. Soil Water Conserv., 58(6), 367-371.
24 Arrow, K., Solow, R., Portney P.R., Leamer, E.E., Radner, R. and Schuman, H., 1993, Report of the NOAA panel on contingent valuation. washington, DC : national oceanic and atmospheric administration, U.S. Department of Commerce.
25 Aizaki, H., Sato, K., and Osari, H., 2006, Contingent valuation approach in measuring the multifunctionality of agriculture and rural areas in Japan. Paddy and Water Environment, 4(4), 217-222.   DOI
26 Ahn, S.E. and Bae, D.H., 2014, The economic value of freshwater ecosystem services based on the evidences from the environmental valuation information system, Journal of Environmental Policy and Administration, 22(4), 27-54.   DOI
27 Bateman, I.J., Langford, L.H., Jones, P., and Kerr, G.N., 2001, Bound and path effects in double and triple bounded dichotomous choice contingent valuation, Resour. Energy Econ., 23, 191-213.
28 Barreiro, J., Sanches, M., and Viladrich-Grau, M., 2005, How much are people willing to pay for silence? A contingent valuation study, Appl. Econ., 37, 1233-1246.   DOI
29 Cameron, T.A. and James, M.D., 1987, Efficient estimation methods for "closed-ended" contingent valuation surveys, Rev. Econ. Stat., 69, 269-276.   DOI
30 Cooper, J.C., Hanemann, M., and Signorello, G., 2002, One and one-half bound dichotomous choice contingent valuation, Rev. Econ. Stat., 84, 742-750.   DOI
31 Carson, R.T. and Groves, T., 2007, Incentive and informational properties of preference questions, Environ. Resour. Econ., 37, 181-210.   DOI
32 Choi, K.B. and Lee, S.H., 2016, A Study on treatment of asbestos contaminated soil with a field wind power purification device, KGC, 63-71.
33 Ju, J.H., Park, J.Y., Choi, E.Y., and Yoon, Y.H., 2016, Assessment of heavy metals contamination in children's playground and surrounding area soils depending on land use types in Seoul, Seoul Studies, 17(1), 115-124.
34 Cho, Y.I., Kang, H.S., and Jeon, E.C., 2016, The effects of reactive nitrogen (Nr) compounds on the acidification in soil and water environment ecosystems and the mitigation strategy, KJEE, 49(1), 1-10.
35 Hanemann, W.M., 1984, Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses, Am. J. Agr. Econ., 66, 332-341.   DOI
36 Hanemann, W.M., Loomis, J., and Kanninen, B.J., 1991, Statistical efficiency of double-bounded dichotomous choice contingent valuation, Am. J. Agr. Econ., 73, 1255-1263.   DOI
37 Kim, J.Y., 1995, An economic appraisal of the environmental value of soil: on Korean perspectives, Chung-ang University Gracuate School Doctorate Thesis.