• Title/Summary/Keyword: Contingent valuation method (CVM)

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Semiparametric Evaluation of Environmental Goods: Local Linear Model Approach

  • Jeong, Ki-Ho
    • Journal of the Korean Data and Information Science Society
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    • v.14 no.2
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    • pp.209-216
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    • 2003
  • Contingent valuation method (CVM) is a main evaluation method of nonmarket goods for which markets either do not exist at all or do exist only incompletely; an example is environmental good. A dichotomous choice approach, the most popular type of CVM in environmental economics, employs binary discrete choice models as statistical estimation models. In this paper, we propose a semiparametric dichotomous choice CVM method using local linear model of Fan and Gijbels (1996) in which probability distribution of error term is specified parametrically but latent structural function is specified nonparametrically. The computation procedures of the proposed method are illustrated with a simple design of simulations.

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A Study on WTP of Mobile Telephone Service Using the Contingent Valuation Method in Korea (조건부가치 추정법(CVM)을 이용한 국내 이동통신서비스에 대한 소비자 WTP 추정에 관한 연구)

  • Jeong, Woo-Soo;Rim, Myung-Hwan;Sawng, Yeong-Wha
    • Korean Management Science Review
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    • v.25 no.2
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    • pp.43-55
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    • 2008
  • Contingent valuation method(hereafter CVM) is generally believed to be one of the most popular methods used for quantifying the value of non-market goods or services particularly by asking respondents of willingness to pay. This study deals with how to use CVM in calculating the value of mobile telephone service by suggesting methodology of estimation and eliminating biases. This study represents an attempt to estimate the WTP(Willingness To Pay) of the mobile telephone service using the face-to-face interview which is the qualitative technique is used. In this study, by using the single bound dichotomous choice model(SBDC) in order to analyze the valuation of mobile telephone service, WTP was estimated. Also we analyze the factors to pay for mobile service in which it becomes the important factor of demanding services. We used logit model. In order to provide robust estimates of WTP, we have used the Method of Montecarlo Simulation. Consequently, consumers showed that WTP about the mobile communications service is generally high. And it could know that the WTP will fell down as the specialized knowledge about the mobile communications frequency was high. It will be able to become the important part to not only the business carrier but also the policy maker to estimate the economic value of mobile telephone service.

A Study on the Estimation of the Value of Tourists' WTP by Payment Method: Focusing on the Gangwon State

  • Hee-Won Yang;Chang-Young Jeon;O-Young Kwon
    • Asia-Pacific Journal of Business
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    • v.14 no.3
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    • pp.251-269
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    • 2023
  • Purpose - This study estimated the value of tourists' willingness to pay (WTP) to develop and promote regional tourism and minimize external effects using the contingent valuation method (CVM). Design/methodology/approach - To reduce exaggeration bias, a major issue of CVM, a pilot survey was conducted to categorize bid value. Additionally, the payment method was divided into a tourism fund and tourism taxes, and the respondents' answers were reaffirmed in two stages. Findings - As a result of the analysis, the tourists' WTP was estimated to be 5,132 KRW (3.60 USD) for the tourism fund and 1,036 KRW (0.73 USD) for tourism taxes. Research implications or Originality - The results of this study provide implications for securing financial resources and establishing policies in Gangwon province, which promotes special self-governing.

Nonparametric Test of Net Economic Benefits by Open-Ended and Closed-Ended Contingent Valuations : An Application to Downhill Skiing in Muju, Korea (개방형(開放型)과 폐쇄형질문(閉鎖型質問)에 의한 Contingent Valuation의 순경제적(純經濟的) 가치평가(價値評價)에 대한 비모수적검정(非母數的檢定) : 무주리조트 스키장의 사례(事例))

  • Han, Sang Yoel;Choi, Kwan;Colletti, Joe P.
    • Journal of Korean Society of Forest Science
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    • v.86 no.1
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    • pp.9-16
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    • 1997
  • The contingent valuation method(CVM) has been used to evaluate the economic value of nonmarket goods such as forest recreation. There are two commonly used CVM questionnaire formats: open-ended and closed-ended. This study evaluates the net economic value associated with day use downhill skiing, using CVM. A random, on-site survey of skiers in Muju, Korea generated the value estimates. In this paper a nonparametric test is introduced to find whether the difference between value estimates from open-ended and closed-ended formats are significantly different because the distributions of WTPs are non-normally distributed. The results show that the net economic benefits of a skier in Muju varies from \15,131 to \25,332. The closed-ended values were 1.15 to 1.67 times as large as the open-ended values, depending on the model specifications. In nonparametric test the mean WTPs of the open-ended and close-ended applications are significantly different. Its reason may be that closed-ended can be more reducing the incentive for strategic behavior than open-ended question. However, we cannot conclude that the closed-ended method is superior to the open-ended method.

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Valuation of Benefits from the Adoption of Project Information Management System

  • Kyong Ju Kim;Kyoungmin Kim;Ki Yong Kang;Geon Hee Lee
    • International conference on construction engineering and project management
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    • 2009.05a
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    • pp.1548-1552
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    • 2009
  • In the construction industry, IT has been an alternative for the enhancement of productivity and technical advances through a paradigm shift. While it has been recognized that the IT system will have a substantial influence on the industry, a quantitative valuation has been very limited. This paper has chosen EVMS (Earned Value Management System), which supports the integrated management of cost and schedule by utilizing IT tools, and which is the largest trend in the construction IT industry in Korea, in order to suggest an analysis model for the valuation of IT. The CVM (Contingent Valuation Method) is used to quantitatively measure intangible value of IT application. Then, a valuation and analysis model were suggested for the quantitative valuation of the effect of IT adoption. In terms of willingness to pay for EVMS, the expected benefits from the adoption of EVMS were US$ 584.52 per man annually. This research should be helpful for construction companies evaluating their investment to Project Management Information System.

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Valuing the DMB Data Broadcasting Services: An Application of Double-Bounded Dichotomous Choice Contingent Valuation Method (이중경계 양분선택형 CVM을 이용한 DMB 데이터방송의 가치평가)

  • Kim, Dong-Ju;Shin, Seung-Do
    • Journal of Technology Innovation
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    • v.15 no.2
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    • pp.153-176
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    • 2007
  • DMB data broadcasting has recently come into the spotlight as a platform for a new business opportunity and an application of various contents. This paper estimates the willingness to pay for the DMB data broadcasting services and explains the demand characteristics for TPEG, BIFS and BWS services, using the Double-bounded dichotomous choice Contingent Valuation Method. Consumers are willing to pay 2,039 Korean won for TPEG service and 1,612 Korean won for BIFS and BWS services per month, which corresponds to the market size 87.6 billion Korean won for TPEG and 195.2 billion Korean won for BWS and BIFS a year respectively. It is also found that the more consumers show usage intentions, have experiences in the similar services, and know of the DMB data broadcasting services, the more they are likely to pay for the DMB data broadcasting services.

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A study on conservative Value Evaluation for landscape of the Rural Tourism villages (농촌체험 마을경관의 보전가치평가 연구)

  • Son, Ho-Gi;Kim, Sang-Bum
    • Journal of Agricultural Extension & Community Development
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    • v.17 no.4
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    • pp.897-918
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    • 2010
  • This paper researches conservative value evaluation of rural tourism villages with "CVM(Contingent Valuation Method)" focusing on visitor to offer the guide for preservation and management in landscape of rural tourism villages based on critical consciousness for conservation and utilization by regional development. The option value is 37,624won(36.7%), the bequest value is 34,856won(34.0%), existence value is 30,073 won(29.3%), and overall average willingness to pay of conservation value is 102,517won(100.0%) for conservative value of sesim-village in Kyung-Ju. The results show that landscape of rural tourism villages has great value historically and culturally. In conclusion, it suggested that planners and staffs of rural tourism villages recognize that it is positively necessary to be considered not only multiple landscape index but also conservation policy in process of development planning in rural tourism villages.

A Study on Conservative Value Evaluation for the Ethnic Villages by Contingent Valuation Method (CVM을 이용한 전통민속마을의 보전가치평가 연구)

  • Kang, Young-Eun;Ahn, Tong-Mahn
    • Journal of Korean Society of Rural Planning
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    • v.15 no.4
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    • pp.43-50
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    • 2009
  • The Ethnic Villages which are designated as a cultural property in Korea are important factors to recognize how the living environment was and to represent uniqueness should be preserved in Korea. For these reasons, this study investigates the Ethnic Villages in Korea and evaluates the economic values of the Ethnic Villages using CVM(contingent valuation method) which has been knows as one of the practical methods in the field of environmental economics. The results of this study indicate that the economic value of the Ethnic Villages for conservation and maintenance is 27,430 won per household/month, and this can be converted into 19,398 hundred million won per one year. This results proves validity of this study compared to the maintenance cost conserving the Ethnic Village of the Cultural Heritage Administration. It can be used as a policy basis to raise finances for conserving the Ethnic Village needed additional support.

A Study on Evaluation of Restoring Crosswalk and Improving Pedestrian Overpass by Contingent Valuation Method (조건부가치측정법에 의한 횡단보도 복원 및 육교 개량의 가치평가에 관한 연구)

  • Lee, Hwan Jin;Oh, Yun Pyo
    • KSCE Journal of Civil and Environmental Engineering Research
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    • v.32 no.4D
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    • pp.323-333
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    • 2012
  • This paper is aimed to recognize trends of various social groups about multiple transportation policies such as the crosswalk restoration by eliminating the pedestrian overpasses and the improvement or continuous extension of existing pedestrian overpasses, currently implemented in Busan, following the globally prevailing pedestrian-oriented transportation environment. Also, this paper utilizes Contingent Valuation Method (CVM) to evaluate the efficiency of individual alternatives in terms of respondent's willingness-to-pay (WTP). Consequently, survey participants preferred the crosswalk or improvement of the pedestrian overpasses rather than depending on the existing pedestrian overpasses. In addition, the WTP value for the crosswalk restoration is approximately 42,452 won per household per year, and, on the other hand, the WTP value for the improvement of existing pedestrian overpasses is approximately 36,793 won per household per year, implicating that the transportation policy makers are suggested to place more priorities on crosswalk restoration than the improvement of the existing pedestrian overpasses.