• Journal of Korea Technology Innovation Society
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• v.3 no.1
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• pp.113-126
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• 2000

The purpose of this paper is to introduce and test an extension of dichotomous choice contingent valuation(DC-CV) methods of pre-test-market evaluation using the specific case of a cable telev-ision service. Specifically we used a double-bounded DC-CV approach. On the whole respondents accepted the contingent market and were willing to contribute a significant amount on average. This willingness varies according to individual characteristics and concerns about the service. It is concluded that the methods are potentially a useful tool for decision-makers in measuring the po-tential demand for a new cable television service and considering the provision of the service.

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

• Survey Research
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• v.3 no.1
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• pp.1-24
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• 2002

Part-whole bias in contingent-valuation studies is a possible explanation for non-use contingent-valuation estimates that are insensitive to marginal changes in environmental commodities. To increase the quality of river water, it is tested how much WTP is paid and is tested whether there is a part-whole bias in this contingent studies. An empirical test of the component sensitivity is provided. This test rejects the hypothesis that respondents are insensitive to the scope of the good being valued. WTP estimated in this paper is 5,435.69 won for Hangang model, and 7,182.68 won for 4-river model. And it might be concluded that part-whole bias exists and it is mainly attributed to substitution and net-benefit effects.

• 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.

• Environmental and Resource Economics Review
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• v.10 no.3
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• pp.387-412
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• 2001

This paper is to empirically test scope effects proposed to judge the internal consistency of contingent valuation method. The application was illustrated for the case of estimating people's WTP for improving water quality at Man Kyoung River in the Chon Buk area. The CV survey was carefully designed and implemented by carrying out recommendations from the NOAA Blue Ribbon panel. Using a split sample, we conducted the Cochran-Mantel-Haenszel test with the frequency distribution of no responses, calculated the Turnbull low bound mean for WTP, and measured the mean WTP from estimated variation functions. The test results consistently exhibited that the CV estimates of WTP were adequately responsive to the size of water quality changes being offered. The mean WTP for improving water quality suitable for swimming (5,171 and 5,212 won) was significantly larger than that for agricultural use and fishing activity (3,280 and 3,136 won).

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

• Journal of Energy Engineering
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• v.22 no.3
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• pp.270-282
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• 2013

Combustible waste into energy policy is an effective method to respond to climate change and depletion of fossil fuels. Combustible waste into energy is the process of generating energy in the form of electricity and/or heat from the combustible waste such as vinyl, paper and plastic. This study tries to estimate the external benefit of enhancing the ratio of combustible waste into energy to primary energy from 1.89% to 5% using contingent valuation(CV) method. To this end, we report the results from a CV survey to elicit the willingness to pay (WTP) for combustible waste into energy. A CV survey of 500 households was conducted in the Seoul by using person-to-person interviews. Thus, the procedures of applying and the findings from the one-and-one-half bounded dichotomous choice spike model used to deal with the zero WTP responses are provided in the paper. The results show that the average WTP is estimated to be 2,724 won per household per month and statistically significant at the 5% level. Expanding the value to the Seoul gives us an aggregate value of 13.7 billion won per year.

• 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.

• Journal of Environmental Policy
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• v.5 no.3
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• pp.79-103
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• 2006

This paper attempts to examine household's willingness to pay (WTP) for piped water quality improvement in Wonju, where the local government are planning to implement a piped water quality improvement program. We apply 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 250 households in Wonju and asked respondents questions in person-to-person interviews about how much they would be willing to pay for the program. Respondents overall accepted the contingent market and were willing to contribute a significant amount (1,583 to 2,776 won), on average, per household per month. This willingness varies according to individual characteristics such as sex, education level, and income. The aggregate value of the program in Wonju amounts to approximately 1.99 billion won to 3.49 billion won per year. The household values can be the benefits that ensue from the program and compared with the costs of the program to determine whether the program is economically desirable.

• Environmental and Resource Economics Review
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• v.28 no.4
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• pp.645-673
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• 2019

The hypothetical nature of stated preferences can lead to a hypothetical bias that might work as a normative pressure, influencing survey responses. This paper aims to test the impact of social desirability bias by comparing economic estimates based on both subjective and objective valuation questions. The case study is about an urban riverine restoration project in Deajeon, South Korea. As valuation methods both contingent valuation and choice experiments were comparatively applied. Based on a nationally representative sample of 1,000 respondents, the test results offered contrasting conclusions between two test approaches. Accroding to the estimation results based on the conventional valuation, the marginal willingness to pay estimates are 10,500 KRW from CV; and 18,600 KRW for improving water quality, 2,200 KRW for the inside view, 8,900 KRW for the outside view, and 5,800 KRW for biodiversity from CE. A segmentation-based approach is a conventionally used method, which showed a limited impact of social desirability on willingness to pay estimates. The alternative parameterization-based approach measures a model-wide impact of social desirability, proving a significant bias. Although the study positioned a cheap-talk statement before the valuation section of the survey questionnaires, which might have pre-screened the bias, the overall implications of the results suggest a caution in reducing and observing hypothetical bias. There might remain a significant and substantial hypothetical bias even after cheap-talk, particularly in situations with strong social desirability, so that the potential role of objective valuation questions is guaranteed.