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http://dx.doi.org/10.3741/JKWRA.2013.46.10.989

Assessment of Economic Value of Sangkwan Multi-Purpose Reservoir (I): Benefits of Environmentally-Enhancing Water  

Lee, Joo-Suk (Division of Economics and Commerce, Hoseo University)
Ryu, Moon-Hyun (Korea institute of water and environment)
Yoo, Seung-Hoon (Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Publication Information
Journal of Korea Water Resources Association / v.46, no.10, 2013 , pp. 989-995 More about this Journal
Abstract
This study attempts to estimate the benefits of environmentally-enhancing water ensuing from Sangkwan multi-purpose reservoir. To this end, we apply a survey technique, the contingent valuation (CV) method to elicit the public willingness to pay (WTP). Two CV surveys of randomly selected households were administrated to on-site and off-site areas. As it happens, a number of respondents reported zero WTPs for the environmentally- enhancing water. To deal with the zero WTPs, this study employs a spike model. The results show that average household's WTP for the environmentally-enhancing water ensuing from Sangkwan multi-purpose reservoir is estimated to be 1,393.7 won for on-site area and 2,237.7 won for off-site area per year. The benefits of environmentally-enhancing water ensuing from Sangkwan multi-purpose reservoir amount to about 38.3 billion won per year. Our findings are expected to contribute to determining an appropriate level of investment and making management policies with regard to the benefits of environmentally-enhancing water.
Keywords
environmentally-enhancing water; Sangkwan multi-purpose reservoir; contingent valuation; spike model; willingness to pay;
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