• Journal of Environmental Policy
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• v.9 no.1
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• pp.109-135
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• 2010

This study estimated the social benefits of establishment 01 the Taehwa Field Ecology Park in Ulsan Metropolitan City, using CVM(Contingent Valuation Method) with multiple choices in consideration of respondent's uncertainty. The estimation results 01 lour logit models show that the probability of willingness-to-pay increases significantly with higher income, higher evaluation on the relevancy of establishment of the Park, and male gender, and decreases significantly with the bidding price. Truncated mean household WTP is estimated as 2,409.4 KRW in the MBYES model with the most efficient estimates of WTP among four models. On the basis of the WTP estimates, the present values of total social benefits in Ulsan Metropolitan City are estimated as 236.5 bill ion KRW when applying the 5% discount rate. This result shows that the present values of total social benefits are greater than the total costs in all models, and thus may prove the economic relevancy of the investment for the ecology park establishment.

• Atmosphere
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• v.29 no.2
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• pp.213-218
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• 2019

A valuation of air pollution is critical for relevant policy-making for the public and research direction. This study conducted a willingness-to-pay (WTP) survey using contingent valuation method (CVM) in Seoul Korea. In detail, this study puts an emphasis on its temporal changes referred on two surveys conducted in 2014 and 2019. In reference to the previous studies in 2002, our survey indicated that the public awareness of air pollution and interests on its sources and solutions increased noticeably. Our survey showed that WTP increased significantly from 2588 to 4827 and 8240 Korean Won $month^{-1}$ in 2002, 2014, and 2019, respectively. Moreover, the percentage of respondents to pay the WTP also increased from 48% to 68% and 79% in 2002, 2014, and 2019, respectively. Our analysis based on the number of Google search on particulate matters (PMs) strongly suggests that such the noticeable increases of the public attention to air pollution is well accorded with the moment of the announcement of a standard for ultra-fine particles and the start of PM prediction in late 2013. But the Google search rate grew about 16.7 times in 2009 compared to 2014, which is much larger than the growth rate of interest and WTP between 2014 and 2019. Our results shed light on policy decision for the right person in the right place on the right time in the era of air pollution.

• Journal of the Architectural Institute of Korea Planning & Design
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• v.36 no.2
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• pp.25-32
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• 2020

The purpose of this study is to estimate the economic value of architectural aesthetic using the contingent valuation method and to analyze the value-giving characteristics. The site survey was conducted based on the scenario of Dong-daemun Design Plaza, which is recognized as a work of outstanding architectural aesthetic. Based on 307 opinions collected, the main results are as follows: First, it could be confirmed that the higher the level of architectural aesthetic, the higher the payment amount was. The result of estimating the value of the architectural aesthetic on the basis of the fixed amount levy showed that the average payment amount was 8,859 won per person. The average payment amount was 13,014 won per person when the rejector of payment was excluded. The value of architectural aesthetic was about 13.72% of total construction cost. Second, free riding, which occurs mainly in the measurement of the value of public goods or environmental goods, appeared. This tendency is stronger in the elderly than in the younger, and in the differential amount levy than in the fixed amount levy. Third, the extreme subjectivity of architectural aesthetic value could be confirmed. While there are a lot of extreme denials of payments such as 0 won, the high-income was willing to pay a substantial amount. Fourth, it was confirmed that income factors was partly involved in the measured value.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1998.10a
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• pp.253-256
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• 1998

This paper presents a valuation methodology for optional calling plan contracts on free-phone calls in the telephone industry. Utilization of the model is not limited to valuation and consequent decision making for the subscribers; it provides a useful guideline for telephone companies in designing calling plans and assessing subscribers' behavior.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.26 no.6D
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• pp.945-950
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• 2006

In implementing transportation projects, benefits have been estimated using conventional benefit components. However, these components have a lot of assumptions and limitations for benefit estimations and thus it seems to be difficult to obtain values of parameters as well as to overlook benefits of non-market goods in calculation process. In other words, current benefit estimations are considered that can be solely measured by directly depending on traffic volumes. Existing economic analysis do not reflect the full benefits, including direct and indirect of the project implementations. To illustrate this fact, bicycle road construction can result in various functional benefits, including improved quality of life, balanced regional development, and good scenery composition. These benefits can not be explained with conventional economic analysis. The objective of this research is to estimate valuation of bicycle road construction using Contingent Valuation Method (CVM). CVM can evaluate user's direct willingness-to-pay as well as maximize bicycle utilization with balanced regional development. This research used the coastline bicycle road construction project for example. The proposed method can be well calculated or estimated benefits for non-market goods of bicycle road constructions using CVM.

• Environmental and Resource Economics Review
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• v.12 no.1
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• pp.1-27
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• 2003

Urban forests have various environmental benefits, contributing to the quality of urban life. However, these values have been underestimated or never been reflected in the urban development planning in Korea. As a result, a number of forests in urban areas were either partly or wholly destroyed without their public's values being assessed explicitly. The objective of this paper is to estimate the economic benefits attached to Mt. Kwanggyo in the Capital Region using contingent valuation method, aiming to provide policy-makers with useful information to make an informed public decision in urban development planning. The survey was carefully designed and implemented to meet a number of recommendation rules suggested in the literature. The overall results show that the respondents well accepted the contingent market and would be willing to pay a significant amount for the proposed program of conserving the mountain. Total economic benefits for the population amounted to approximately 3.8 billion Korean won per year. This quantitative information can be used in cost-benefit analysis of urban development plans.

• Ocean and Polar Research
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• v.34 no.2
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• pp.175-183
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• 2012

A project to build a large oceanographic research ship was proposed to improve the level of ocean research. This paper attempts to measure the non-market benefits of the project. To this end, the dichotomous choice contingent valuation method is used. In particular, the recently proposed one and one-half bounded model is applied. The model can reduce the potential for response bias compared to the double bounded model, while maintaining much of its efficiency. Moreover, in order to deal with zero WTP observations, a spike model is adjusted for our data. A survey of 500 randomly selected households was implemented in the Metropolitan area. The respondents were asked in person-to-person interviews about how they would be willing to pay for implementing the project. Overall, respondents accepted the contingent market, and were willing to contribute a significant amount (3,244 won), on average, per household per year. The aggregate value of the project nationwide would amount to approximately 40.1 billion won per year.

• Ocean and Polar Research
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• v.27 no.2
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• pp.161-169
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• 2005

In recent days, most of the lagoons in Korea have been lost on account of indiscreet development and pollution. Thus, this study measures the conservation value of the Songji lagoon, a representative lagoon in Korea by using the contingent valuation (CV) method and specifies the non-use value of Songji lagoon. The survey was carefully desigrled and implemented to meet a number of recommendation rules suggested in the literature. The overall results show that the respondents well accepted the contingent market and would be willing to pay a significant amount for the proposed program to conserve Songii lagoon. Total Conservation value of Songji lagoon amounted to approximately 21.2 billion Korean won per year. Moreover, the non-use value of Songji lagoon amounted 15.7 billion Korean won per yew. The results of measuring the conservation value provide decision-makers with data indispensable to devising a conservation and management policy.

• Proceedings of the Korea Water Resources Association Conference
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• 2010.05a
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• pp.452-456
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• 2010

Water is an indispensable input to human's existence and industrial production. In these days, people are getting more concerned about their health and the interest in the safety of drinking water has increased. In this situation, this paper attempts to measure the economic benefits of the tap water quality improvement. The study area was restricted to Busan, the second largest city in Korea, where local government is planning to implement a tap water quality improvement program. We apply a one-and-one-half bounded dichotomous choice contingent valuation (CV) method to obtain at least a preliminary evaluation of the benefits. CV is developed for valuing goods or services that cannot be valued either directly or indirectly from market observations and has been applied to several environmental goods. The CV survey was rigorously designed to comply with the guidelines for best-practiced CV studies. We surveyed a randomly selected sample of 400 households in Busan and asked respondents questions in person-to-person interviews about how they would be willing to pay for the water quality improvement. Respondents overall accepted the contingent market and were willing to contribute a significant amount (US$1.66), on average, per household per month. We can also calculate the aggregate value of the program which improves the water quality in Busan. This study is expected to provide policy-makers with useful information for evaluating and planning environmental policies relating specifically to water.

• Journal of Korean Society of Water and Wastewater
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• v.21 no.4
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• pp.385-394
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• 2007

The objective of this study was to estimate social cost on rehabilitation of existing water pipes by investigating the willingness-to-pay (WTP) of residents at INJE County to avoid the loss and inconvenience of transportation and business resulting from the sudden failure and leaks of old water pipes. Contingent valuation method was used through conducting survey to 180 residents in Inche County, with questions of double-bounded dichotomous choice. The resulting WTP of residents at Inche was 7,682 won/month/household. The annual social cost could be estimated as 960 million won, which might be caused by the failure of the old water pipes at INJE County.