• Journal of the Korean Institute of Landscape Architecture
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• v.38 no.2
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• pp.25-36
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• 2010

The generally known important functions of forests include air purification and the health benefits that humans can receive when relaxing and enjoying recreation in the forests. In recent years, people have appreciated the value of the natural environment but it is not easy to answer the question how much monetary value a natural environment has. Because environmental property is public property, which is not traded on the market, market prices cannot be established, so it is not easy to assess the currency value. Methods for estimating environmental property value have been studied by economists. The representative method for measuring environmental property value is a contingent valuation method, or CVM. Various methods have been researched and attempted along with the development and fusion of mathematics, statistics, and economics. Representative methods of CVM are single-bound and double-bound logit and probit methods. This study has been carried out to compare four estimates. Estimates are as follows: the lowest estimate is derived from a single-bound logit WTPmedian while the highest estimate is from double-bound probit WTPmean. While there are some preceding studies on price estimation and methods of measurement through CVM, they offer only partial comparisons. This study suggests four analytic methods and prices through 1,123 questionnaires. The results can be used for the subsequent comparison of estimate prices and the methods of measurement

• 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.22 no.1
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• pp.179-214
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• 2013

This paper estimated the value of waterside landscape and ecosystem of Han River basin with a double-bound dichotomous choice type of CVM. We used the exponential willingness to pay model to represent the nonnegative willingness to pay. This model is found to be especially important in analyzing a double-bound dichotomous choice model. The total willingness to pay was estimated as 705.5 billion won per annum. This suggests that current budget size for water quality and ecosystem conservation for Han River needs to be expanded.

• Environmental and Resource Economics Review
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• v.13 no.3
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• pp.387-415
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• 2004

This paper is intended to valuate air quality of the Seoul Metropolitan Area using triple-bound dichotomous choice (TBDC) contingent valuation method (CVM), supplemented by open-ended (OE) questionnaires. In the OE questionnaires, some respondents would state their willingness to pay (WTP) outside the limits of the WTP interval. It implies that WTP estimates based on the customary dichotomous choice (DC) questionnaires can be biased. We argue that the TBDC-CVM refined with OE questions is more efficient, because the latter helps purge the former of corrupted data that may have been collected by the TBDC interview process.

• 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.

• Journal of Korean Society of Forest Science
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• v.99 no.6
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• pp.900-907
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• 2010

Recreation forests are offer to personal development through recreation, education about nature, association with people, mind relaxation in forests. Most efficient method for measuring Recreational value of natural forest is economic approach, and Obtained by this approach, visitors to the recreational forests and other people will be able to explain recreational value. The value of the environment goods are not traded in the market, it's real value is difficult to measure. People have appreciated the value of the natural environment but it is not easy to answer the question how much monetary value a natural enjoy prosperity environment. This study is involved in giving the right recognition to the value of recreation and environment by estimating economically the value of the environment in which visitors stay, and presenting the appropriate price. The environmental value of a recreation forests is estimated through contingent valuation method (CVM). The annual recreation value per person of surveyed recreational forests is WTP with a mean between about \14,000 and 16,500. The recreation value of one recreational forest surveyed is annually between approximately 1.2 billion won and 1.4 billion won. The annual recreation value of Chungbuk Province recreation forests is presumed to be between about 15 billion won and 16.9 billion won.

• Health Policy and Management
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• v.16 no.1
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• pp.95-116
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• 2006

According to rapid increase of the population of senior citizens, there has been growing concern of Long-Tenn Care(LTC) services recently. Long-Tenn Care services, however, haven't been established systematically in Korea and the supply of LTC services is not sufficient despite the increase in the current social demand. This study aims to estimate the 'Willingness to Pay(WTP)' for LTC insurance which the government plans to introduce by means of social insurance, using Contingent Valuation Method(CYM). In addition, this study analyzes the factors affecting WTP for LTC insurance. An interview survey was carried out to derive WTP for LTC from 450 people who lived in Seoul aged 20 and above during the period from 16th to 21st of June 2003. Double-Bounded Dichotomous Choice Method was applied among several CVMs available to estimate both use value and no-use value of goods. There was pilot survey carried out prior to the main survey. The results show that the average monthly. WTP for LTC provided in home and residential setting is 18,192Won and 19,293Won, respectively. In the case of home care, WTP goes higher depending on reliability of LTC insurance policy and need for LTC insurance, as well as marital status, education and average monthly income. On the contrary, WTP is conversely affected by higher age and higher bids. In the case of institutional care, the factors affecting WTP are similar to those of home care, except age. This study followed NOAA's suggestions generally and the value derived through survey could be reliable. However, there can be the least bias in the process of survey because the CVM should be used under the supposed circumstances. Despite those limitations, it can be concluded that the amount the citizens are willing to pay for LTC is high enough to meet the costs needed to provide LTC.

• International Journal of Highway Engineering
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• v.15 no.4
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• pp.155-165
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• 2013

PURPOSES : Benefits for improvement of travel time reliability obtained from construction of new highways should be considered as a major factor in the feasibility study for highway constructions. The purpose of this study is to develop a method of estimation for the value of travel time reliability. METHODS : Highway type (urban/rural highway) and traffic flow type(interrupted/uninterrupted) was considered to estimate he value of travel time reliability. And Double-bounded Dichotomous Choice among Contingent Valuation Method(CVM) was applied to survey the willingness-to-pay of drivers when travel time reliability is improved. Finally the value of travel time reliability was estimated using the results of survey and logit model. The value of travel time reliability was estimated considering travel objectives, time constraint travel and non-time constraint travel. RESULTS: The value of travel time reliability of business trip is higher than that of non-business trip. The value of travel time reliability of time constraint travel is higher than that of non-time constraint travel. The value of travel time reliability in urban area is higher than that in rural area. CONCLUSIONS: It was concluded that the proposed method in this study is more realistic and proper to estimate the value of travel time reliability because it reflects the situations of time constraint travel and non-time constraint travel.

• Journal of the Korean Data and Information Science Society
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• v.23 no.5
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• pp.913-925
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• 2012

This study evaluates the economic benefit of the project constructing the international riding arena having been built at Sangju in Gyeongsangbuk-Do by the willingness to pay (WTP) of residents in the province. As the evaluation method, the dichotomous choice contingent valuation method (CVM) is adopted with the additional questions of whether his/her WTP is zero, to improve the statistical accuracy of evaluation results. Considering the arena's administrative location, the population of the surveys for analysis is confined to residents of Daegu and Gyeongsangbuk-do. The survey is conducted through personal interviews. It turns out that the WTP per household per year is evaluated as 1,847 won and the total yearly benefit of the Sangju international horse riding arena is estimated as 3.56 billion won.

• 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.