• Environmental and Resource Economics Review
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• v.14 no.1
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• pp.1-24
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• 2005

One of the most important factors that determine the quality of a stated preference study is questionnaire design. This study introduces strategies for enhancing the rationality and testing for the validity of choice experiments(CE) using "example" choice questions that mimic the main choice questions. From the case study of WTP for reduced radon radiation exposures in the home, the study found that screening out irrational responses, 12% of the effective responses, resulted in a meaningful increase in model fit. Meanwhile the study tested for anchoring effects, as a way of confirming the divergent validity of the study, by looking at equality of models estimated for two subsamples. The overall test results were mixed. The pros and cons of the questionnaire design strategy employed are also reported.

• Environmental and Resource Economics Review
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• v.16 no.3
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• pp.701-721
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• 2007

A key issue in the development and application of stated preference nonmarket valuation is the incorporation of unobserved heterogeneity in utility models. Two approaches to this task have dominated. The first is to include individual-specific characteristics into the estimated indirect utility functions. These characteristics are usually socioeconomic or demographic variables. The second employs generalized models such as random parameter logit or probit models to allow model parameters to vary across individuals. This paper examines a third approach: the inclusion of psychological or 'latent' variables such as general attitudes and behaviour-specific attitudes to account for heterogeneity in models of stated preferences. Attitudinal indicators are used as explanatory variables and as segmentation criteria in a choice modelling application. Results show that both the model significance and parameter estimates are influenced by the inclusion of the latent variables, and that attitudinal variables are significant factors for WTP estimates.

• Proceedings of the Korea Water Resources Association Conference
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• 2017.05a
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• pp.55-55
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• 2017

가뭄은 국민생활 및 경제 등에 막대한 손실을 초래하며, 지역사회 공동체나 사회기능에 심각한 영향을 끼칠 수 있는 재해이다. 가뭄피해 최소화를 위해서는 단기대응, 복구지원 등의 사후대책에서 사전대비 및 예방으로의 정책 전환이 필요하며, 이러한 정책 수립을 뒷받침하기 위해서는 가뭄에 따른 정량적인 피해영향 평가가 우선적으로 필요하다. 하지만 가뭄 피해의 범위 및 형태는 워낙 광범위하기 때문에, 피해추정을 위한 잣대라 할 수 있는 영향평가 기법조차 제대로 정립되지 못하고 있는 실정이다. 국내에서는 분야별(기상, 농업, 수문)로 지수화 된 지표를 이용한 가뭄 평가가 주로 수행되고 있으며, 경제적 영향평가는 방법론에 대한 시범 연구 수준이다. 가뭄기록조사 등 과거 가뭄피해 자료에서도 피해액의 금액환산이 되지 않은 사례가 대부분이며 급수차지원, 관정개발 등 사후복구비 위주의 일부 자료만이 피해금액으로 제시되어 있을 뿐이다. 댐, 저수지 등에 의한 용수공급 안정성으로 인해, 기상학적인 가뭄이 즉시 물부족으로 인한 피해로 이어지지는 않지만, 물부족이 발생하거나 부족량이 예측되는 상황에서 피해규모를 시스템적으로 추정 및 비교할 수 있는 기법 개발의 필요성에 의해 잠재피해액 개념의 공급지장비용 추정기법을 개발하였다. 공급지장비용 또는 편익 도출을 위한 이론적 배경으로, 경제적 가치 또는 파급효과를 분석하기 위한 방법은 경제학적 접근법과 비경제학적 접근법으로 구분된다. 경제학적 접근법에서 사용하는 진술선호 기법의 경우 전국을 대상으로 설문 등의 과정을 거쳐 지불의사액을 도출하는 과정이 필요하기 때문에 많은 조사비용이 소요된다. 비경제학적 또는 공학적 접근법으로 분류되는 대체비용법은 이론적 배경이 약하고 대체항목의 선택에 주의가 필요하다는 단점이 있으나, 물가자료, 산업통계, 수자원통계 등 기초자료의 주기적 업데이트가 유리하며, 정신적 피해를 제외할 경우 피해비용 추정결과의 편차가 진술선호기법 보다는 작은 장점이 있다. 본 연구에서는 피해비용의 과대추정에 유의하여 대체비용법에 기반한 일본 후생노동성의 감 단수피해추정기법을 우리나라 자료에 맞게 수정하여 공급지장비용을 추정하였으며, 경제학적 접근법에 의한 용수의 한계가치비용 등과 비교를 통해 적용성을 검토하였다.

• Environmental and Resource Economics Review
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• v.13 no.3
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• pp.337-366
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• 2004

Contingent Valuation Method (CVM), as non-market valuation approach, has been criticized on that respondents may not realistically reflect their budget constraints in answering willingness to pay (WTP) for hypothetical CV questions. This paper empirically estimates the income calibration factor associated with CV responses through combining travel cost method and contingent valuation method in a utility-theoretic framework. The joint model of recreation demand function and contingent WTP function was applied to an important case study on the Man Kyoung River system, whose water quality is at issue because of the Sae Alan Kum reclamation project. Relevant economic variables such as price, income and water quality had significant influence as anticipated by the economic theory. Equally important, the income calibration factor was not significantly different from one, suggesting that the systematic discrepancies of CV responses relative to the actual behavior was not detected at least in terms of budget exaggeration. Overall, this study supports the notion that carefully designed CVM studies can provide informative data on individuals' willingness to pay for environmental quality changes.

• Environmental and Resource Economics Review
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• v.17 no.4
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• pp.875-901
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• 2008

This article estimates the economic values of changes in water quality of the Paldang Watershed by using the Choice Experiment (CE). The conditional logit model estimation results show that a small improvement in water quality from the 'status quo' level to the level of 'very good' increases average household's monthly utility by 3,157 Won, whereas a water quality degradation down to the 'normal' level gives rise to an increase in the monthly average utility by 9,649 Won. The corresponding social gain and loss of water quality changes to the Metropolitan Area were thus estimated about 285 billion Won and 872 billion Won, respectively. This article seems meaningful in that it resorts to the new water ecosystem classification criteria and indices that are respondent-friendly. They help a CE study like this to overcome one of its critical weakness that the number and contents of attributes of a CE study can quickly add to the information overload problem, especially where the environmental good under investigation is hard for ordinary respondents to understand.

• Journal of Korea Water Resources Association
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• v.41 no.1
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• pp.101-113
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• 2008

Cost-benefit analysis was conducted to propose the best alternatives for integrated watershed management. Benefits of all alternatives were estimated combining results of choice experiment method with alternative evaluation index (AEI). Choice experiment which is a kind of stated preference techniques was applied to six regions since the Anyangcheon watershed was divided into six according to spatial characteristics and conditions (potential hazard and location). Alternative of NB > 0 must be considerable since they are economically and technically feasible.

• Environmental and Resource Economics Review
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• v.15 no.2
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• pp.147-175
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• 2006

This paper attempts to incorporate three important factors-perceptions, behavior and valuation-in analysing consumers' responses to health risks from environmental pollutants. Using a survey sample of 500 consumers in the Chonbuk province area, this paper empirically investigated determinants of risk perceptions from using tap water as drinking water. Most consumers were considerably concerned about health risks from drinking tap water. Moreover, those subjective concerns were not random, but were systematically related to individuals' demographic variables such as age, gender, and family size. Those subjective beliefs also influenced respondents' purchase intentions on safer water bottles, in response to a contingent behavior question of presenting two types of water bottles. The technical risk information provided in the survey had significant effects on purchase intentions only when it was interacted with respondents' actual averting practice. In addition, the sample selection effects were present by eliminating respondents who decided not to purchase either of two types of water bottles. The potential selection bias had impacts on the coefficients of the price difference variable, and subsequently the estimates of the price increments for health risk reductions.

• Environmental and Resource Economics Review
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• v.29 no.3
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• pp.335-362
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• 2020

Using the Hedonic pricing model using Box-Cox transformation, this paper estimated the marginal effect (implicit price) of odors from landfill in the metropolitan area on housing prices and the willingness to pay for changes in certain odor conditions. This paper utilized the proximity from the landfill in the metropolitan area as a environmental variable, and analyzed the effect of various housing characteristic variables on the sale price of apartments within a radius of 5 km from the landfill. In particular, because odors factor have various heterogeneity, we applied hedonic price models instead of stated-preference methods with various types of functional forms through Box-Cox transformation, considering the heterogeneity of each region. Estimates show that the marginal value (implicit price) for the distance from the odor source was 0.227 to 0.533 depending on the function type of the estimated model. In addition, when other house factors are the same, the marginal willingness to pay for a distance of 1km from the odor source was calculated to be 16.79 to 51.76 thousand dollar depending on the type of function. Finally for the general Box-Cox model, the annual WTP was estimated to be 3,229dollar.

• Journal of Korean Society of Environmental Engineers
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• v.38 no.10
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• pp.580-587
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• 2016

This study aims to estimate the values of freshwater ecosystem services from demand and supply perspectives. From demand side, unit-values of ecosystem services are derived from Environmental Valuation Information System (EVIS) and aggregated to 5 main watersheds in Korea. The derived unit-values are based on the willingness to pay estimates per household from stated preference methods. The nation-wide average total values of water quantity supply, water purification, and natural disaster control are estimated as 501.2, 410.4, and 242.4 billion won/year, respectively. From supply side, we examine the direct and indirect public expenditures (or investment) in 2013 to improve freshwater ecosystem services by the government. The total sum of government expenditures corresponds to 8,882 billion won in 2013, where 12.9, 81.3, 0.3 and 5.3% are spent to improve provisioning, regulating, supporting and cultural services, respectively, indicating that most efforts are concentrated in enhancing regulating services.

• Environmental and Resource Economics Review
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• v.29 no.1
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• pp.1-22
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• 2020

While contingent valuation method (CVM) has been widely used for non-market valuations, it has been argued that it may suffer from hypothetical bias. However, if CVM respondents believe that their responses could affect the real consequence, the method could satisfy consequentiality. If a CVM satisfies a sufficiently high consequentiality, hypothetical bias could disappear as shown by some previous studies. In this study, we experimentally compare the willingness to pay (WTP) for donation of a relatively high consequentiality group with that of a relatively low consequentiality group for Korean university students. We find that both the existence probability and the size of hypothetical bias are lower for the high consequentiality group. This result implies that a CVM for a real policy including environmental policies could be free from hypothetical bias because its consequentiality would be relatively high, and warrants a future field study investigating the effect of consequentiality on hypothetical bias.