• Environmental and Resource Economics Review
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• v.20 no.1
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• pp.119-153
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• 2011

This study reviews various aspects of model formulating processes of dichotomous choice responses of the contingent valuation method (CVM), which has been increasingly used in the preliminary feasibility test of Korea public investment projects. The theoretical review emphasizes the consistency between WTP estimation process and WTP measurement process. The empirical analysis suggests that two common parametric models for dichotmous choice responses (RUM and RWTP) and two commonly used probability distributions of random components (probit and logit) resulted in all most the same empirical WTP distributions, as long as the WTP functions are specified to be a linear function of the bid amounts. However, the efficiency gain of DB response compared to SB response were supported on the ground that the two CV responses are derived from the same WTP distribution. Moreover for the exponential WTP function which guarantees the non-negative WTP measures, sample mean WTP were quite different from median WTP if the scale parameter of WTP function turned out to be large.

• Environmental and Resource Economics Review
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• v.15 no.5
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• pp.921-937
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• 2006

In this paper, we apply fuzzy theory in a discrete choice Contingent Valuation Method(CVM) in order for dealing preference uncertainty problem. Fuzzy membership function is used in an empirical analysis to estimate the willingness-to-pay(WTP) for the preservation of the endangered Asiatic Black Bear in Korea. The estimated WTP was about 9,090 Korea Won per household with 78 percent of confidence level. The advantage of applying fuzzy theory in the valuation method could be found in its ability to measure the confidence level of the estimated WTP.

• Environmental and Resource Economics Review
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• v.8 no.1
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• pp.51-73
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• 1998

조건부가치측정법(CVM)의 지불의사 유도방법인 이중 양분선택형 질문법은 단일 양분선택형 질문 CV자료의 통계적 비효율성을 극복하기 위한 방법으로 제안되었다. 이 방법은 여러 가지 장점에도 불구하고 출발점 편의의 심리학적 근거인 정박효과 (anchoring effect)의 발생 가능성을 의심받고 있다. 그러므로 본 논문에서는 이중 양분선택형 질문 CV자료에서 정박효과를 검토할 수 있는 일반적 지불의사금액모형을 제시하고, 그 모형으로부터 정박효과를 검토할 수 있는 방법을 제안한다. 모형은, Cameron and Quiggin(1994)이 제안한 이변량 모형에 두 번째 내재 지불의사금액의 설명변수로서 처음 제시된 특정금액에 대한 양분선택적 응답결과를 포함시킨 형태이다. 이 모형에서 처음 제시된 특정금액에 대한 양분선택적 응답결과의 계수 부호가 음(-)이고 통계적으로 유의하다면 정박효과가 발생하는 것으로 볼 수 있다. 그러나 만약 이러한 계수 검토에서 정박효과 발생을 확인할 수 없는 경우, 두 번의 응답에서 두 지불의사금액 추정치들의 평균이 다르다고 볼 수 없다면 정박효과를 우려할 필요가 없다. 이 검토 모형 및 방법을 본 연구에서 한강 수질 개선에 대한 CV자료에 적용해 본 결과 정박효과를 우려할 필요가 없음을 확인할 수 있다.

• Environmental and Resource Economics Review
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• v.17 no.2
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• pp.349-379
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• 2008

Otters which are the nearly extinct feral animal as well as indicator species of ecological balance of river have a wide variety of public value. The objective of this paper is to estimate non-market value of preservation of otters' habitats in Cheongju Si and Cheong won Gun. In this research, the one-and-one-half bound dichotomize choice method as a contingent valuation methods is used to derive willingness to pay for the preservation of otters' habitats. 311 residents were surveyed to determine their recognition and willingness to pay for preservation of otters' habitats. The results show that the value of preservation of otters' habitats is 5,904 won per house and month.

• Environmental and Resource Economics Review
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• v.18 no.3
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• pp.431-455
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• 2009

This study estimates the WTP for the plan of solving deforestation due to limestone mining and calculates that damage cost using contingent valuation method. As the results of analysing a dichotomous choice CV data, the yearly mean WTP per household for the plan is 5,045 won(95% confidence interval : 3,729~6,360 won) in single bounded CV model and is 4,361 won(95% confidence interval : 3,710~5,012 won) in double bounded CV model. The damage cost of deforestation due to limestone mining can be estimated as 55.3% of WTP for the plan which is assigned to restoring the deforestation area to the original or similar alternative state. The average yearly deforestation cost of 1 ha due to limestone mining is reached 20.90 million won(95% confidence interval : 16.53~25.27 million won). And the asset value of that 1 ha damage is 160.02 million won(95% confidence interval : 126.56~193.49 million won). The fact is found that the damage cost of deforestation using replacement cost method is likely to be underestimated. The total damage cost of deforestation because of limestone mining in 3 cities (Donghae, Samcheok, Yeongwol) is 204.0 billion won(95% confidence interval : 161.4~246.7 billion won) which is composed of 26.5% for Donghae, 28.9% for Samcheok, and 44.6% for Yeongwol according to the damage size of deforestation due to limestone mining in 3 cities.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.11
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• pp.479-485
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• 2017

This study estimated the non-use values of the Gum river estuary which are not related to the direct or indirect use of the Gum river estuary using the contingent valuation method (CVM). The non-use values of the Gum river estuary were explained and asked to be evaluated in the CVM questionnaire and estimates of the WTPs(willingness-to-pay) were elicited using the Turnbull nonparametric estimation methods on the dichotomous choice CV data. Results found the Turnbull lower bounded mean WTP per year for non-use value of the Gum river estuary was estimated at 5,822 won (95% C.I. 5,295 ~ 6,349 won) from single dichotomous CV data, and 6,205 won (95% C.I. 5,701 ~ 6,710 won) from double dichotomous CV data. The mean of two WTP estimates, 6,014 won (95% C.I. 5,498 ~ 6,529 won), was used to calculate the annual total non-use value of the Gum river estuary. Therefore, the non-use value of the Gum river estuary was estimated at 220.3 billion won (95% C.I. 201.4 - 239.2 billion won) annually. This non-use value of the Gum river estuary was composed of the bequest value totaling 68.3 billion won (95% C.I. 62.5 - 74.2 billion won), the existence value of 58.0 billion won (95% C.I. 53.0 - 63.0 billion won), the option value of 57.7 billion won (95% C.I. 52.7 - 62.6 billion won), and the vicarious consumption value totaling 36.3 billion won (95% C.I. 33.1 - 39.4 billion won).

• Journal of the Korean Society for Marine Environment & Energy
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• v.16 no.3
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• pp.217-225
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• 2013

It is time to develop new renewable energy that could fundamentally replace fossil fuel, which has been increasingly needed due to environmental pollution and energy security. Korean marine bio-energy development project is planned to produce 50% of total bioenergy. This study attempts to measure the greenhouse gas emission reduction benefits of marine bio-energy development project through contingent valuation method. Single bounded dichotomous choice (SBDC) is applied with spike model. The results show that the average willingness to pay are estimated to be KRW 4,190 at SBDC, per household per year. If the result has been expanded to the region which is survey conducted, KRW 50.1 billion annually. These quantitative information can be usefully utilized in the cost benefit analysis to implement project and policy-making for the industrialization of marine bio-energy development project.

• The Journal of the Korea Contents Association
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• v.17 no.3
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• pp.532-541
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• 2017

Design is an extremely critical and important for the prosperity and development of a corporation, and design for children's facilities can be said to be a critical factor not only from a commercial perspective but also one of the critical factors that can be beneficial to the physical, intellectual and emotional growth and development of children. To measure the economic value of publicly designed children's facilities established with the purpose of children's design education, this research study utilized the Contingent Valuation Method. This research study attempts to provide useful information for policy administrators on the usage of both publicly designed children's facilities with high use value and also high non-use value through economic value measurement. To achieve the objectives of this research, the Contingent Valuation Method that utilized both open-ended questions and also double-bounded dichotomous choice methodologies was used. The results of the pre-verification that used the open-ended questions results from 50 test subject participants and the double-bounded dichotomous choice methodology results from 530 test subject participants confirmed that the average annual per person expense was estimated to be KRW 12,463. The gross benefit amount figure estimated for all households in the nation was estimated to be about KRW 219 billion annually.

• Journal of the Korean Society for information Management
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• v.23 no.4 s.62
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• pp.111-128
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• 2006

The purpose of this study is to measure economic value of full-text information services in order to determine whether it is worth for libraries to invest a large amount of money in constructing database to begin with. The study applied an contingent valuation method to measure its economic value. The imaginary scenarios are designed for estimation the value of Non-market-goods, estimation in advance and experts investigation are needed for rising the confidence level, double-bounded dichotomous choice is chosen in question method. The use value, which one user is willing to pay for domestic monograph full-text information services, was 836 won per one monograph. And, the annual non-use value was 236 won. The total annual economic value of all the students was 831 billion won.

• Journal of Environmental Policy
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• v.6 no.1
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• pp.83-109
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• 2007

This study evaluates citizen's willingness-to-pay for the benefits from improved water quality of the Taehwa river in Ulsan, Korea, using a contingent valuation method with double-bounded dichotomous choice. The estimation results of the bivariate probit model shows the amounts of willingness-to-pay are monthly 3,458.5 Korean Won per household and yearly 14,760 million Korean Won for total households in Ulsan, Korea. These estimates are equivalent to the social values of improved water quality of the Taehwa river. This study also tests the inter-dependence between two answers, which may occur in the responses of the questions for the double-bounded dichotomous choice, and all the null hypotheses on the inter-dependence are rejected in this study.