• Environmental and Resource Economics Review
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• v.10 no.3
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• pp.433-459
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• 2001

The water quality of Paldang reservoir now grades the third class water based on COD criterion, meaning that it is no longer suitable for drinking. This study attempted to estimate the economic value of water quality improvement in Paldang reservoir using CVM. The survey used payment card format to measure the willingness to pay of the questionnaire respondents for the improvement of water quality and also factors that affect the WTP. The survey showed that men rather than women, those had higher income and paid more water supply charges, those who lived in the area for a shorter period of time, those who do not use city water for drinking, had willingness to pay more. The WTP was estimated 4,952 to 5,497 won on a monthly average. The economic value of the improvement of the water quality of Paldang reservoir was estimated between 344.2~382.1 billion won on an annual basis.

• Environmental and Resource Economics Review
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• v.9 no.5
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• pp.829-851
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• 2000

This study used the contingent valuation method to determine how much consumers would be willing to pay to improve their city-gas safety and what factors influence consumers' willingness-to-pay (WTP). To elicit this information a mail questionnaire was sent to a randomly selected sample of 2,400 residents who use the city-gas. The survey results showed that individuals were willing to pay $4,750{\pm}342.8$ won per month for the city-gas safety improvement. The aggregate annual WTP was estimated at 121.5~318.0 billion won. To better understand how individual's socio/demographic characteristics affect the WTP, Censored Tobit analysis was used. The results show that higher income, more gas use (cooking and heating), willingness to install a safety instrument significantly increase consumer's WTP.

• Environmental and Resource Economics Review
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• v.9 no.4
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• pp.773-799
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• 2000

The purpose of this paper is to measure the benefits of conservation of the green belt in the Greater Seoul area by CVM using dichotomous choice with a follow-up elicitation method. According to the government's plan, part of the green belt in the Greater Seoul area is to be freed from green belt designation. The mean willingness-topay(WTP) to conserve the green belt in the current state turns out to be about 7,430 won(95% confidence interval 6,220 - 8,640 won) per household, which amounts to 308 billion won per year for entire population of Seoul. This WTP figure is found to be significantly influenced by level of education, sex, and the variables related to the perception and attitudes of respondents.

• Environmental and Resource Economics Review
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• v.9 no.4
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• pp.727-746
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• 2000

This paper investigates the social attitudes toward compensation of local communities hosting noxious facilities. Using a contingent valuation survey, we find that respondents are more distrustful of government institutes and waste disposal firms than non-governmental organizations. Siting procedures for waste disposal facilities are thought to be unfair 10 general. We also find that social distrust influences the likelihood of voting yes in a referendum to compensate the hosting communities of waste disposal facilities. Individuals who are distrustful of government institutes and waste disposal firms exhibit positive attitudes for the compensation of hosting communities. The higher the level of compensation offered, the less likely to vote yes for compensation.

• Environmental and Resource Economics Review
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• v.9 no.4
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• pp.747-771
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• 2000

This paper reports the results of a study to elicit willingness to pay (WTP) for changes in health risks from exposure to As, Pb, THM in tap water using experimental market method. The experimental market method, compared with other non-market valuation methods, allows us to use incentive compatible demand revealing scheme, to acquire market-like experience through repetitive auctions, and to incorporate learning process by providing new information during the session. Participants seemed to utilize the objective risk information in a 'rational' manner, and to change their WTP bids accordingly. Moreover they were able to reduce the 'ambiguity' in risk perception processes when objective risk probabilities provided are quite different from their subjective perceptions. Nonetheless, anchoring effects appeared to be still persistent in spite of market-like experience and learning opportunity. And implicit values entailed by WTP bid/risk tradeoffs indicate a wide variation in values across alternative risk reductions and overrated responses to very small risk reductions.

• Environmental and Resource Economics Review
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• v.10 no.1
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• pp.25-44
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• 2001

본 논문의 목적은 양분선택질문형 비시장가치평가법을 통한 편익추정에 사용되는 제 함수의 적합성 여부를 검증하기 위해 사용될 수 있는 방법론들을 비교 검토하는 것이다. 여가수렵의 환경적 요인의 변화에 따른 편익추정에 사용된 함수의 적합성을 판단하기 위해 변이계수접근법, 함수설정 오류 테스트, 그리고 비모수접근법 등이 각 함수에 적용되었다. 결과에 따르면, 편익추정에 이용된 세 가지 로짓함수(선형, 로그, 쉐어모형) 모두 적합한 것으로 판정되었다. 주어진 함수형태에 적용된 세 방법론간에 밀접한 일치성을 보였으며 경우에 따라서는 상호보완적이라는 함축성을 보이기도 하였다 이와 같은 결론은 로짓함수로부터 추정된 값들에 Krinsky-Robb 시뮬레이션을 이용하여 구축한 신뢰구간의 함수간 비교를 통해서도 확인되었다. 주어진 환경 시나리오에 대해 각 함수로부터 도출된 평균 추정치의 신뢰구간이 모두 충분히 중복되었기 때문에 편익추정과 관련하여 함수형태간에 유의적 차이가 없음이 입증된 것이다.

• 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.

• 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.

• Environmental and Resource Economics Review
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• v.16 no.3
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• pp.451-483
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• 2007

Recently, the problem of noise has received much attention in the urban environment. This paper attempts to measure the economic benefits of urban noise reduction in the metropolitan area. To this end, the dichotomous choice contingent valuation method is applied. In particular, recently proposed one and one-half bound model that reduces the potential for response bias in the double bound model while maintaining much of its efficiency. We surveyed a randomly selected sample of 800 households in the metropolitan area and asked respondents questions in person-to-person interviews about how they would willing to pay for the noise reduction. Respondents overall accepted the contingent market and were willing to contribute a significant amount (997 to 1,778 won), on average, per household per month. This willingness varies according to individual characteristics such as concerns about noise, dwelling area, and income. The aggregate value of the noise reduction in the sampled metropolitan area amounts to approximately 79.26 to 141.35 billion won per year.

• Environmental and Resource Economics Review
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• v.12 no.3
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• pp.427-452
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• 2003

Demand analyses often assume perfect substitution and some level of aggregation before analysis and data collection. Earlier works on this subject are carried out in the context of ordinary demand systems. However, perfect substitution is a degenerate special case in the systems and it is much more easily handled in a system of marginal value functions and no previous analysis has used the marginal value functions to test for perfect substitution and make possible aggregation with prior restrictions. In this article, we present the empirical results on a system of marginal value functions in fisheries and pose testable results of perfect substitution and aggregation. The contribution of this article is new establishment of a set of restrictions implying perfect substitutability among all commodities and the application to the problem of commodity aggregate. A system of marginal value functions is estimated in fisheries and its implication of perfect substitution is reasonably drawn.