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

• Journal of Environmental Policy
• /
• v.8 no.3
• /
• pp.163-180
• /
• 2009

This study attempts to investigate the preference uncertainty of respondents involved in stating their Willingness to Pay (WTP). For the Contingent Valuation Method (CVM) survey, we employed two approaches using two split samples. The respondents of one sample were given the opportunity to express intensity of preference through Multi-bounded Discrete Choice (MBDC) WTP questions, while those in the other sample were given Dichotomous Choice (DC) WTP questions. By incorporating the two elicited degrees of preference uncertainty into examining the WTP responses, we compared the two approaches. In comparing the DC model with the MBDC model, the mean WTP for the DC model was similar to PRYES in the MBDC Model. We concluded that the MBDC model estimates the various mean WTP while considering the preference uncertainty.

• International Journal of Highway Engineering
• /
• v.18 no.5
• /
• pp.75-82
• /
• 2016

PURPOSES : This study was initiated to estimate the benefits from the campaign to prevent drowsy driving crashes on expressways. The study was conducted by the Korea Expressway Corporation using a contingent valuation method. METHODS : First, a questionnaire was designed for a preliminary survey. From the survey's results, the initial willingness to pay for the campaign was determined by averaging different amounts of payments chosen under virtual scenarios in the survey. The willingness to pay data was used to find a first bid price for the open-ended method used for the second survey. After that, a primary questionnaire was designed and conducted using a single dichotomous choice question (SDBCQ). Drivers at expressway resting areas were asked their willingness to pay for the campaign. Based on statistical analysis using data collected from the second survey, the mean willingness to pay was estimated using a probability utility function. Finally, the benefit from the campaign was calculated using the estimated willingness to pay and accident data on expressways. CONCLUSIONS : Based on the result from the contingent valuation method, the benefit from the campaign to prevent drowsy driving crashes was estimated to be 170.6 won per expressway trip. The benefit is to be paid as an additional toll. In addition, the traffic crash cost estimate is about 2,209,680,000 won less than the cost during the same period in 2014.

• Journal of Korean Society of Transportation
• /
• v.31 no.5
• /
• pp.48-59
• /
• 2013

Normally the benefits concerned in the feasibility study for highway constructions are travel time saving, vehicle operation cost, etc. which can be calculated using the simulation tool(EMME3). However, there must be extra benefits of driving amenity improvement that drivers can perceive through decreasing driving fatigue and improving driving comfortability. In this study, the definition of driving amenity was established and a method of estimation for the benefit of driving amenity improvement was developed. Highway type (urban/rural highway) and highway density was considered to estimate the driving amenity. And Double-bounded Dichotomous Choice among Contingent Valuation Method(CVM) was applied to survey the willingness-to-pay of drivers when highway density decreases. Finally the value of driving amenity was estimated using the results of survey and logit medel. As the existing highway density is high, willingness-to-pay increases in both urban and rural highways. Even though the changing rates of highway density are same, willingness-to-pay is different based on the existing highway density.

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

• Korean Journal of Organic Agriculture
• /
• v.28 no.3
• /
• pp.273-288
• /
• 2020

The purpose of this study is to estimate farmers' willingness to accept (WTA) of direct payment for increasing public benefit using the contingent valuation method. The double-bounded dichotomous choice and the open-ended question were used to measure WTAs for basic form and optional form, respectively. The results show that WTA for basic form was inversely proportional to the acreage. WTAs were KRW 1,694,001 with 2 ha or less, KRW 1,617,789 with over 2 ha~6 ha, and KRW 1,562,977 with over 6 ha. The results also indicate that WTAs for optional form are similar to payments of agricultural environmental conservation program except physical (chemical) control of pests and weed. The results of this study can provide useful information for the establishment of direct payment for increasing public benefit.

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

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

• Environmental and Resource Economics Review
• /
• v.14 no.1
• /
• pp.75-100
• /
• 2005

This study attempts to empirically investigate the respondents' preference uncertainty involved in stating their willingness to pay (WTP). In the contingent valuation (CV) survey, we employed two approaches using two split samples. The respondents of one sample were given the opportunity to express intensity of preference through polychotomous choice (PC) WTP question. Those of the other sample were given a follow-up question of confidence measure (0~100%). By incorporating the two elicited degrees of preference uncertainty into examining the WTP responses, we take a comparison of the two approaches in terms of the goodness-of-fit of the examination and the efficiency of the mean WTP estimates. In comparing the DC model with the PC models, the DC model provides more efficient estimates. Moreover, the conventional DC model give some gains in terms of the goodness-of-fit and efficiency in comparing with the PC model most similar to this model. In this specific study, incorporating the preference uncertainty in DC model results greater estimates than conventional DC model without loss of goodness-of-fit and efficiency. This implies that the consideration of preference uncertainty on DC model could correct underestimating. We conclude that DC model provides a better estimate of WTP and preference uncertainty could be a critical information on the DC-CV estimation.

• KSCE Journal of Civil and Environmental Engineering Research
• /
• v.32 no.4D
• /
• pp.323-333
• /
• 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.