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http://dx.doi.org/10.3741/JKWRA.2015.48.9.711

The Study on the Economic Effects of Advanced Water Treatment by using CVM  

Jang, Seok Won (K-water Research Center)
Kim, Shang Moon (K-water Research Center)
Publication Information
Journal of Korea Water Resources Association / v.48, no.9, 2015 , pp. 711-717 More about this Journal
Abstract
This paper attempts to measure the economic benefits of advanced water treatment in five cities (Goyang, Paju, Gumi, Gimcheon, Chilgok), which are supplied water from Goyang and Gumi filtration plant. We used the dichotomous choice contingent valuation method to estimate WTP. Parametric interval-data model are used to obtaining the mean WTP estimates. The results show that the mean of additional WTP for advanced water treatment services were estimated to be KRW 231.3 and KRW 231.2 per $m^3$ using model with covariates and without covariates, respectively. Given the water supplies of Goyang and Gumi filtration plants ($59.675m^3/y$ and $93.734m^3/y$), the economic benefits of those advanced water treatments can be expected to be KRW 13.8 billion and KRE 21.68 billion. And the calculated B/C ratios are 3.7 and 2.1 when a lifespan of facility is 10 years. Advanced water treatment should be introduced in terms of the economic benefits and costs. Thus, this results can be useful in water policy decision-making.
Keywords
advanced water treatment; CVM; WTP;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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