• Environmental and Resource Economics Review
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• v.26 no.3
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• pp.417-449
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• 2017

The purpose of this study is to analyze the effect of local area concentration of particulate matter on life satisfaction, by matching subjective satisfaction in the Korea Labor & Income Panel Study data with daily data of $PM_{10}$ and $PM_{2.5}$. We find that the concentration of particulate matter has a significant negative effect on satisfaction. A $1{\mu}g/m^3$ increase in $PM_{10}$($PM_{2.5}$) leads to lower the probability of choosing 'satisfaction' by 0.042%p~0.091%p(0.034%p~0.153%p) and a 1% increase in annual income per household raises the probability of choosing 'satisfaction' by 0.16%p~0.18%p respectively. To estimate the monetary value of reducing $PM_{10}$ and $PM_{2.5}$, we calculate willingness-to-pay for mitigating air pollution, which represents the tradeoff between the reduction in particulate matter and income. We find that people on average are willing to pay \108,787($96)~209,519($186) for a $1{\mu}g/m^3$ reduction in $PM_{10}$ and to pay 89,345($79)~362,930($322) in $PM_{2.5}$. This amount corresponds to 0.26%~0.50%(0.22%~0.88%) of the average annual household income in South Korea.

• Journal of Energy Engineering
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• v.24 no.1
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• pp.164-171
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• 2015

Although coal-fired power generation has played a role as base load unit, it has incurred various social costs in the process of generating and providing electricity. It is necessary to extend the proportion of low-carbon power generations, and reduce the ratio of coal-fired power generation to cope with global climate changes. This study, therefore, attempts to estimate the public's willingness-to-pay (WTP) for substitution of supplied electricity from hydro-electricity generation, a representative renewable energy, for coal-fired power generation. To this end, we apply the contingent valuation (CV) method, widely used technique when valuing non-market goods, to elicit the public's WTP. In addition, a spike model is employed to consider zero WTPs. After the empirical analysis with 1,000 households CV survey data, the results show that mean household's WTP for replacing supplied electricity from hydro-electricity generation with coal-fired power generation is estimated to be about 54 KRW per kWh. The results of this study are expected to contribute to determining energy-mix and provide benefit information of hydro-electricity generation.

• Journal of the Korean Society of Food Culture
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• v.33 no.4
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• pp.299-306
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• 2018

Pork is a popular meat consumed in Korea. However, the consumption pattern has typically focused on preferred parts, like pork belly, which is usually broiled. This consumption pattern has increased both stocks of low fat parts and medical costs, and has thereby disturbed pork industry growth and the national health welfare. Changing the consumption patterns of preferred parts and encouraging consumption of low fat parts will improve consumers' quality of life and also increase their benefits. Thus, this study estimated WTP (Willingness To Pay) for health funds among consumers who eat pork meat, considering the health benefits gained by consuming low fat parts and changes in preferred part consumption. The results of this study show that WTP is higher when consumers have a smaller family and a higher income; these consumers plan to increase intake of pork meat in the future and think that the promotion of low fat pork meat consumption is more important. The WTP for health funds is estimated to be 49won to 287won through Logit Model. The health benefits of low fat consumption were estimated to be 92 billion won to 539 billion won per year. Therefore, reforming low fat pork consumption not only changes the traditional consumption pattern focused on preferred parts but also leads to a variety of benefits for consumers, including health benefits.

• Journal of Korea Water Resources Association
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• v.43 no.9
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• pp.835-842
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• 2010

This paper attempts to examine households' willingness to pay (WTP) for ground water pollution improvement which can be used in cost-benefit analysis on the project for developing the soil pollution control technique. We applied a contingent valuation (CV) method to obtain at least a preliminary evaluation of the WTP. The CV survey was rigorously designed to comply with the guidelines for best-practiced CV studies. We surveyed a randomly selected sample of 500 households in Seoul metropolitan area and asked respondents questions in person-to-person interviews about how they would be willing to pay for the program. Respondents overall accepted the contingent market and were willing to contribute a significant amount (1,195 to 1,552 won), on average, per household per year. The aggregate value of the project for developing the soil pollution control technique amounts to approximately 20.3 billion won per year. The household values can be the benefits that ensue from the project and compared with the costs of the program to determine whether the project is economically desirable.

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.11 no.5
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• pp.46-55
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• 2012

This study proposes an estimate method of willingness to pay(WTP) for real-time route guidance systems using contingent valuation method(CVM) under double bounded dichotomous choice question(DBDCQ) and analysis for impact factors of WTP estimation. This study assumed that provided real-time traffic information service is optimal route concepts dealing with traffic conditions on origin-destination. Analysis targets were classified into two groups as short distance path and middle distance path for estimating WTP for realtime route guidance system in a year using the survival analysis method and the regression model with personal information, actual condition and satisfaction of information usage and users' awareness and usage of facilities. As a result, mean WTP of realtime route guidance system is 4,034won/year in short distance path, and 4,884won/year in middle distance path. Therefore real-time route guidance system for longer distance path is recognized as more valuable than shorter distance path. Moreover, the necessity of information was required on a higher income group and higher WTP was estimated on owners of vehicle group and lower awareness of a route group.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2011.10a
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• pp.575-578
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• 2011

This study attempted to estimate the subscribers' utility for IMT mobile data services by measuring willingness to pay(hereafter WTP). A survey to potential IMT subscribers has been done and contingent valuation method(hereafter CVM) was applied. 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 WTP. The result of this study showed that WTP for the IMT mobile data service is 33,283 won per month. Taking into account the current average voice ARPU(Average Revenue Per User), we could estimate the subscribers' utility for 4G mobile voice and data services.

• Journal of Korean Society of Forest Science
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• v.97 no.5
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• pp.525-529
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• 2008

The purpose of this paper is to examine willingness to pay (WTP) for endangered species, the Korean goral, of Woraksan National Park in South Korea. The median of the WTP is adopted to estimate the value because it will not be affected by the extreme values. The estimated household median WTP using a logit model for Korean goral conservation in Woraksan National Park was 15,221 won. The estimated value of the WTP in relation to the Korean goral has some policy implications. especially in terms of implementing policy to protect the Korean goral. The result shows that the public conservation program does have a positive WTP for the conservation of the Korean goral. This implies that the Korean goral is an important species that needs to be maintained, the government has been expended a large sum of money in an attempt to protect it.

• Journal of Korean Society of Rural Planning
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• v.18 no.2
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• pp.47-56
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• 2012

Recently urban areas have been advanced in the aspects of convenience, traffic, and cultural environments, but they have faced various problems including environmental issues, traffic congestion, and increasing stress. In contrast, rural areas are in charge of various functions, conservations of natural environments and traditional cultures. Rural life style may be beneficial to urbanites. As urbanites are increasingly interested in leisure activities, such as experiences of tradition cultures and education, safe foods and rural tourism are gaining attention as alternative ways of satisfying their desires. In other words, the rural tourism not only provides urbanites with leisure spaces by playing a role in relations between urban and rural areas, but also acts as a nonfarm income to the rural residents. With the changes of time, the number of current rural experience tourism on a nationwide is increasing and competition among locations is getting intensive. Particularly, despite various rural tourism villages in operation, there is not a standard in the dice for experience cost and accommodation costs. Accordingly, the aim of the study was to estimate urbanites' willingness to pay(WTP) for rural experience tourism and to provide basic data for qualitative growth and revitalization with regard to the tours. The estimated WTP for rural experience tourism was found to be 5,600won for experience, 5,600won for food, 42,000won for accommodation, and 13,000won for purchasing farm products, respectively. This trend could be similarly found (there were slight differences in food cost) on all analyses, such as the research of the current situations of rural tourism villages in Gyeongnam province, the pilot survey and the estimation depending on whether or not urbanites experienced the tours. In other words, the WTP for urban hands-on experience tours estimated by this study is considered highly significant in terms with possibility of its application in the sites. It is concluded that the urbanites' WTP for rural experience tourism obtained by this study will contribute to the setup of standard index of rural tourism, the qualitative development of rural hands-on experiences, and the raise of nonfarm income.

• The Journal of Fisheries Business Administration
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• v.49 no.3
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• pp.85-99
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• 2018

This study is to compare and evaluate the estimating method of WTP(willingness to pay) for the valuation of oceans and fisheries resources with non-market goods characteristics using contingent valuation method. In general, when estimating parameters of the WTP function, we should take into account the assumption of probability distribution, inclusion of covariates, method of inducement of payment, and the treatment of 0 payment intention and resistance responses. This study utilizes survey data that was used to estimate the value of fisheries resource protection zones, with a total of 1,200 samples. The main results of this study are summarized as follows: First, the final willness to pay amount is estimated at a statistical significance of less than 1 percent, and the distribution of the final willness to pay amount is from \6,926 of the double bounded dichotomous model to \10,721 of the spike model. Second, the willness to pay amount based on assumptions about the normal and logistic probability distributions are estimated to be \9,429 and \9,370 respectively, so there was no significant difference. Third, the willness to pay amount of the single bounded dichotomous model and the double bounded dichotomous model are estimated to be \8,951 and \6,926 respectively, making a relatively large difference. Fourth, the willness to pay amount of the model without covariates and the model with covariates are estimated to be \9,429 and \8,951, respectively, so the willness to pay amount is underestimated when the covariates are included. Fifth, the Spike model that considers zero payment intention and resistance response estimates \10,405 as the highest payment in this study. Finally, the CVM analysis guidelines proposed by the Korea Development Institute (KDI) are estimated to be \9,749 and \10,405 respectively, depending on including no covariates and with covariates. Compared to other models, the final willness to pay amount is not estimated underestimated. Therefore this study suggests the use of KDI's guidance under government public policy projects. In view of these results, the estimating model for willness to pay amount model will be selected by considering the sample size, the suitability of the model, the sign of the estimated coefficient, the statistical significance, the ratio of the zero payment intention and the payment rejection. And, for CVMs on government public policy projects, it is desirable to estimate by the method proposed by the KDI.

• Journal of the Korean Society of Marine Environment & Safety
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• v.28 no.5
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• pp.681-691
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• 2022

Zostera marina (ZM), a type of seagrass registered as a marine protected species in South Korea, provides valuable ecosystem services to humans, such as improving marine water quality, providing food, spawning grounds and habitats for marine life, and absorbing carbon dioxide. Therefore, the government is seeking to preserve ZM by designating ZM-protected areas. This study examined the public willingness to pay (WTP) for the preservation of ZM using contingent valuation. The one-and-one-half-bounded model was adopted for WTP elicitation, and the single-bounded model was also applied for comparison. The spike model was employed to deal with many zero WTP responses. The household average WTP was estimated as KRW 4,087 per year, securing statistical significance. The national value was KRW 84.1 billion per year. The preservation value of ZM estimated in this study can be used as important data for economic analysis of various projects or policy implementation for its preservation.