• Environmental and Resource Economics Review
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• v.24 no.2
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• pp.435-461
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• 2015

Recently, Korean development Institute includes water for environmental improvement as an additional water demand category in water resources development project. In response to this change, this paper is to measure benefits of providing additional water in Yeondok Ohsip River by applying contingent valuation method. This study extended the conventional CVM design by incorporating distance variable into WTP function of dichotonomous choice responses and treated protest bids by estimating sample-selection models. The empirical analysis exhibited that more than 30% of respondents were categorized as protest bids and the mean of WTP from sample selection models were three times higher than that of the whole sample. In addition, the distance variable had significantly negative impact on sample WTP regardless of variables forms, and the geographical market area were more 400km, which implies that beneficiaries of water service would the households from the whole nation.

• Journal of Information Management
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• v.40 no.1
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• pp.113-132
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• 2009

Unlike existing other industries, the knowledge-based industry has the potential to grow increasingly with factor input unlimited. Importance of investigating knowledge and information evaluation cannot be overemphasized to promote economic development in that knowledge and information is accepted as an engine of new economy. We attempt to define the scope and value of knowledge and information and develop the knowledge and information value model. The results help policy-makers to manage and evaluate the knowledge and information with useful and responsible information.

• Environmental and Resource Economics Review
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• v.13 no.1
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• pp.49-82
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• 2004

The study aimed to evaluate cancer damage cost due to risk from benzene inhalation. We performed health risk assessment based on US EPA guideline to estimate annual population risk in Ulsan metropolitan city. Also, we estimated a willingness-to-pay amount for reducing a cancer mortality rate to evaluate a value of statistical life. We combined the annual population risk and the value of statistical life to calculate the cancer damage cost. In the health risk assessment, we applied the benzene unit risk ($2.2{\times}10^{-6}{\sim}7.8{\times}10^{-6}$) in the US EPA'S Integrated Risk Information System to assess the annual population risk. Average concentration of benzene in ambient air is $7.88{\mu}g/m^3$(min: 1.16~max: $23.32{\mu}g/m^3$). We targeted an exposure population of 516,641 persons who aged over 30 years old. Using a Monte-Carlo simulation for uncertainty analysis, we evaluated that the population risk of benzene during ten years in Ulsan city is 2.90 persons (5 percentile: 0.32~95 percentile: 9.11persons). And the monthly average WTP for 5/1,000 cancer mortality reduction during ten years is 14,852 Won(95% C.I: 13,135~16,794 Won) and the implied VSL is 36 million Won(95% C.I: 30~40 million Won). Cancer damage cost due to risk from benzene inhalation during 10 years in Ulsan city is about 104 million Won(5 percentile: 13~95 percentile: 328 million Won). Health benefit cost to reduce a cancer mortality risk of benzene is about 50 million Won is Ulsan metropolitann city. But, it is very important that this cost is not for all health damage cost of cancer mortality in some area. We just recommended a model for evaluating a cancer risk reduction, so we must re-evaluate an integrated application of total VOCs damage cost including benzene.

• Environmental and Resource Economics Review
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• v.27 no.4
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• pp.695-723
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• 2018

Recently, extreme weather due to climate change has become more frequent, and increase of fine dust has worsen air quality in Korea. Therefore, not only negative perception on coal-fired power generation is dominant, but also the social acceptance of nuclear power generation declines. This study aims at deriving consumer preferences on the mid and long term power mix with various energy sources. Willingness to pay for each generation source was estimated and the preference heterogeneity of consumers was examined by using mixed logit and latent class models. Mixed logit estimation results show that the preference heterogeneity of consumers is especially large for the nuclear power relative to renewable or coal energy. According to the estimation results from the latent class model, group 1 prefers renewable energy while group 2 prefers coal energy. Group 3 shows lexicographic preference which means restricted rationality. As for the policy implication, it is necessary to understand the preference heterogeneity of consumer groups in planning the mid to long term power mix.

• Journal of Environmental Impact Assessment
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• v.27 no.2
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• pp.181-193
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• 2018

The present study was conducted to analyze the quality of the habitats of Abies koreana WILS. by using the InVEST model based on the analytic hierarchy process (AHP) technique and to evaluate the economic value by estimating the carbon fixation. Abies koreana WILS., an original biological species of South Korea, may be an essential element in establishing the national biological sovereignty in the future. The subjects of the present study were the national parks in Mt. Halla, Mt. Jiri, and Mt. Sobaek, which are the habitats of Abies koreana WILS. As suggested by previous studies as a limitation of the InVEST model, the utilization of the data from relevant international publications as the input data, due to the lack of the domestic input data, may decrease the accuracy of the modeling. Therefore, the AHP technique was applied for the input data. The modeling was performed with reference to the years of 1980, 1990, and 2000 for the scenario analysis. The result of the modeling showed that the habitat quality was changed most in the national park in Mt. Halla, as the habitat quality score was decreased from 0.96 in 1980 to 0.97 in 1990 and 0.94 in 2000. In the national part of Mt. Sobeak, the habitat quality was changed most in the sub-alpine zone, as the habitat quality score was decreased from 0.98 in 1980 and 0.98 in 1990 to 0.97 in 2000. The habitat quality was best conserved in the national part in Mt. Jiri, as the habitat quality score was 0.98 in 1980, 0.99 in 1990, and 0.99 in 2000. The estimated economic loss by the change of the habitat quality was 19,280,000 USD for Mt. Halla and 8,030,000 USD for Mt. Sobeak. In the present study, the habitat quality of the Abies koreana WILS, the original species of South Korea, was evaluated and the economic value of the ecological services provided by the habitats was estimated quantitatively. The result showed that the ecosystem service model may be used to qualitatively analyze the quality of a habitat located in a specific region and to estimate the economic value quantitatively. The objective evaluation of ecosystem services demonstrated in the present study may be applied to promote sustainable utilization of natural resources and conservation of the ecosystem by predicting the changes that may be caused by external factors including the development of preservation areas.

• Environmental and Resource Economics Review
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• v.14 no.1
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• pp.75-100
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• 2005

This study attempts to empirically investigate the respondents' preference uncertainty involved in stating their willingness to pay (WTP). In the contingent valuation (CV) survey, we employed two approaches using two split samples. The respondents of one sample were given the opportunity to express intensity of preference through polychotomous choice (PC) WTP question. Those of the other sample were given a follow-up question of confidence measure (0~100%). By incorporating the two elicited degrees of preference uncertainty into examining the WTP responses, we take a comparison of the two approaches in terms of the goodness-of-fit of the examination and the efficiency of the mean WTP estimates. In comparing the DC model with the PC models, the DC model provides more efficient estimates. Moreover, the conventional DC model give some gains in terms of the goodness-of-fit and efficiency in comparing with the PC model most similar to this model. In this specific study, incorporating the preference uncertainty in DC model results greater estimates than conventional DC model without loss of goodness-of-fit and efficiency. This implies that the consideration of preference uncertainty on DC model could correct underestimating. We conclude that DC model provides a better estimate of WTP and preference uncertainty could be a critical information on the DC-CV estimation.

• Environmental and Resource Economics Review
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• v.27 no.3
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• pp.421-461
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• 2018

Windpower turbines have positive values for visitors with regard to tourism and learning. On the other hand, it is clear that windpower turbines have negative impact on the landscape, particularly when the level of landscape is high. The impact of windpower turbines on the visitor's value is composed of two elements: the viewingvalue which is independent of the level of landscape and the landscape value which varies with the level of landscape. The net visitor's value of windpower turbines is the sum of these two values with opposite signs. This study used a choice experimentation method to value the impact of windpower turbine construction in the mountainous area in Korea. This study estimated the viewing value, the landscape value and the visit value as the sum of the two values. The estimated results demonstrated a significantly positive viewing value, a significantly negative landscape value, and weakly negative net visit value in average.

• Journal of the Korean Society of Marine Environment & Safety
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• v.20 no.2
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• pp.130-142
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• 2014

The Korean government is considering implementation of the marine ecosystem restoration technology program (MERTP) to analyze the current status of the marine ecosystems and causes for the ecosystem deterioration as well as to eventually establish a master strategic plan for restoring ecosystem functions and preventing ecosystem functional loss. In order to determine likelihood of successful implementation, it is essential to perform an analysis of the economic feasibility of the program. The present study assessed economic feasibility of the MERTP. To this end, the dichotomous choice contingent valuation (CV) method is used. In particular, dichotomous choice (DC) format is employed as a method of eliciting willingness-to-pay (WTP) response to incentive-compatible mechanisms. The study also employed the spike model to deal with zero WTP responses from the DC CV survey. This survey of 1,000 randomly selected households in accordance with the guidelines provided by the National Oceanic and Atmospheric Administration (USA) was carried out nationwide in 2013. And, the respondents were asked in person-to-person interviews about their WTP for implementing the MERTP. The results showed that the annual mean WTP was estimated to be 5,414 won per household. Consequently, the annual benefit from the MERTP would be about 98.6 billion won for the next five years. Economic feasibility assessment utilizing the MERTP investment cost and expansion cost of the value provided that net present value, benefit/cost ratio, and internal rate of return are 337.8 billion won, 5.20, and 65.9 %, respectively, which are bigger than 0, 1.0, and 5.5 %, and that the MERTP passes the cost-benefit analysis.

• Journal of the Korean Institute of Landscape Architecture
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• v.37 no.6
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• pp.1-11
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• 2010

The purpose of this research is to identify satisfaction levels of the arboretum which will be provided in the Multifunctional Administrative City and to estimate the economic value of using choice experiments. The attributes were "Preservation", "Education", "Recreation", "Facility", "Accessibility" and the entrance fee. The main effects model was utilized to construct hypothetical alternatives. Calibration of the conjoint choice model revealed that 'wetlands' and 'forest trails' in "Preservation" and the "Recreation", respectively, were significant variables. This result indicates that respondents are willing to pay more for these if they are provided in the arboretum. Also, 'variety seeking' tendency, age, and income level positively influenced the provision of the arboretum. Involvement in preservation of natural environment, however, had a negative influence on the establishment of the arboretum. Because this study is the first attempt to estimate the economic valuation of an urban arboretum using choice experiment, there are several suggestions for future research in terms of determining the base level and inclusion of salient attribute levels.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.719-746
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• 2014

This study attempts to estimate the value of the water quality improvement by deriving the equilibrium price of the water pollutant emission permit for the imaginary water pollutant emission trading market. It is reasonable to say that there is already an implicit social agreement for the unit value of water pollutant, when the government set the Total Water Pollutant Loading System for the major river basin as a part of the Comprehensive Measures for Water Management, particularly for the Nakdong River Basin. Therefore, we can derive the unit value of water pollutant emission, which is already implied in the pollution allowance for each city or county by the Total Water Pollutant Loading System. Once estimated, it will be useful to the economic assessment of the water quality related projects. An imaginary water pollutant emission trading system for the Nakdong River Basin, where Total Water Pollutant Loading System is already effective, is constructed for the estimation of the equilibrium price of water pollutant permit. By estimating marginal abatement cost curve or each city or county, we can compute the equilibrium price of the permit and then it is regarded as the economic value of the water pollutant. The marginal net benefit function results from the relationship between the emission and the benefit, and then the equilibrium price of permit comes from constructing the excess demand function of the permit by using the total allowable permit of the local government entity. The equilibrium price of the permit would be estimated to be $1,409.3won/kg{\cdot}BOD$. This is within reasonable boundary compared for the permit price compared to foreign example. This permit price would be applied to calculate for the economic value of the water quality pollutants, and also be expected to use directly for the B/C analysis of the business involved with water quality change.