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

• Journal of agriculture & life science
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• v.44 no.3
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• pp.89-97
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• 2010

In the contingent valuation method (CVM) survey, we employed double-bounded discrete choice (DBDC) question to investigate the willingness to pay (WTP). The estimation results for the bivariate logit model show that respondents are willing to pay 329,256 won per year. The model with covariate variables suggests that the covariate effects help describe behavioral or preference tendencies. Double-bounded models increase efficiency over single dichotomous choice models, because the answers yes-no or no-yes yield clear bounds on WTP.

• Journal of Korean Society of Rural Planning
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• v.13 no.2
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• pp.51-61
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• 2007

The purpose of this paper is to estimate the economic value of Multi-functionality Roles including landscape and so on, which traditional stone fences in Korea possess, using Dichotomous Choice Contingent Valuation Method (DC-CVM). The stone fences is life cultural heritance of regional residents. It has functions like Development of Favorable Landscapes, Maintenance of Cultural Heritage, and Recreation/Relaxation. Expectation from regional visitors shows that the existence and inheritance value of the stone wall is higher then we expected. According to the research that we had done from the people that had agreed to contribute the stone wall. moreover the public commercial value of regional tradition stone was not only 2,900 billion won but also it will increase an economic gain in every year. Therefore, preserving the stone wall that has Multi-functional Roles and values can lead to huge economic value in the future. But farmhouses in the stone wall conservation area are being supported 9 billion won in every year. This is only 0.03% of the income that farmhouse earns per year. Thus, stone wall preservation policy and plan can raise green-tour commercial value of inland area as a long-term inside measurement. Those will have to be propelled continuously.

• Journal of Korean Society of Rural Planning
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• v.12 no.2 s.31
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• pp.27-35
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• 2006

The purpose of this paper is to estimate the economic value of Multi-functionality Roles including landscape and so on, which the stone fences in Jejudo possess, using Dichotomous Choice Contingent Valuation Method(DC-CVM). The stone wall is life cultural heritance of Cheju islanders. It has functions like Development of Favorable Landscapes, Maintenance of Cultural Heritage, and Recreation/Relaxation. Expectation from Cheju visitors shows that the existence and inheritance value of the stone wall is higher then we expected. According to the research that we had done from the people that had agreed to contribute the stone wall, the result was that the public commercial value of Cheju tradition stone will increase every yew(2006: 367 billion won, 2011: 437.1 billion won). Therefore, preserving the stone wall that has Multi-functional Roles and values can lead to huge economic value in the future. But farmhouses in the stone wall conservation area are being supported 6 million won every year. This is only 10% of the income that farmhouse ems per year. Thus, stone wall preservation policy and plan that can raise green-tour commercial value of Cheju Island of long-term inside measurement will have to be propelled continuously.

• Journal of Soil and Groundwater Environment
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• v.21 no.6
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• pp.156-168
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• 2016

The Korean government is planning to invest a lot of funds for conservation of the soil. Accordingly, it needs quantitative information on the soil. This paper attempts to analyze the total value of soil quantitatively: the total economic value of soil can be divided into use value and non-use value. To this end, we apply a replacement cost method (RCM) and contingent valuation method (CVM). Especially, CVM is most widely used to measure the non-use value such as environment goods. We employed the one-and-one-half-bounded dichotomous choice (OOHBDC) for willingness to pay (WTP) elicitation and a spike model. The monthly mean WTP was estimated to be KRW 3,949 per household for the next 10 years, which is statistically significant at the 1% level. Expanding the value to the relevant population gives us KRW 897.9 billion per year and as of the end of 2015, the non-use value of soil was assessed to be KRW 838.6 billion. Meanwhile, use value is subdivided into direct use value and indirect use value. This value was calculated KRW 3,277 trillion and KRW 51.8 trillion, respectively. As a result, total economic value of soil is estimated to be KRW 3,330 trillion in Korea.

• Korean Management Science Review
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• v.25 no.2
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• pp.43-55
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• 2008

Contingent valuation method(hereafter 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 willingness to pay. This study deals with how to use CVM in calculating the value of mobile telephone service by suggesting methodology of estimation and eliminating biases. This study represents an attempt to estimate the WTP(Willingness To Pay) of the mobile telephone service using the face-to-face interview which is the qualitative technique is used. In this study, by using the single bound dichotomous choice model(SBDC) in order to analyze the valuation of mobile telephone service, WTP was estimated. Also we analyze the factors to pay for mobile service in which it becomes the important factor of demanding services. We used logit model. In order to provide robust estimates of WTP, we have used the Method of Montecarlo Simulation. Consequently, consumers showed that WTP about the mobile communications service is generally high. And it could know that the WTP will fell down as the specialized knowledge about the mobile communications frequency was high. It will be able to become the important part to not only the business carrier but also the policy maker to estimate the economic value of mobile telephone service.

• Ocean and Polar Research
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• v.26 no.1
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• pp.77-86
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• 2004

The paper is to estimate the economic value of ecotourism in Anmyeondo tidal wetlands using a double-bounded dichotomous choice (DBDC) model of the Contingent Valuation Method (CVM). For the reliability and the validity of CVM a survey was conducted for 511 visitors by personal interview method in Anmyeondo during August 2000, and respondents were asked for maximum Willingness-To-Pay (WTP) to buy a ticket fer the tidal flat's ecotourism. Overall, respondents answered that they would be willing to pay 55,879 won for a ticket under the study. All equations and results estimated are statistically significant at the 1% or 5% level. For the aggregation of WTP estimates, the sample values are extended to the total annual number of visitors in Anmyeondo area during 1998. A conservative estimate, which considers the calibration factor (0.5) recommended by NOAA (1994) and a positive response rate (83.17%), is 73 billion won.

• Korean Journal of Agricultural Science
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• v.43 no.2
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• pp.275-287
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• 2016

This study attempts to estimate the benefits of using water ensuing from the Chilgap multipurpose reservoir for environmental improvement. The contingent valuation method (CVM) was used to elicit the willingness to pay (WTP) for providing environmental improvement water from the Chilgap reservoir to Daechi-stream and Ji-stream. The DCDB (double-bound dichotomous choice) survey method was used to collect data for the analysis. Due to the usually high cost of increasing the sample size, the use of follow-up questions was implemented as an inexpensive method of improving the efficiency of the estimation. A spike model was used in this study because a number of respondents showed zero WTP. The spike model can be estimated as easily as the conventional model. Results show that the average annual household's WTP is 4,516 won using the conventional model and 8,644 won using the spike model. Applying the estimated average annual household's WTP to the Chungnam and Daejeon regional levels, the benefits of environmental improvement water from the Chilgap reservoir is estimated at 11.9 billion won per year. The temporal benefits of providing water for environmental improvement, for a 50-year period at a 6.0% discount rate, is estimated at about 190 billion won in the Chungnam and Daejeon areas. These results could be useful especially when the government tries to determine an appropriate level of investment and to make a policy related to providing environmental improvement water.

• Journal of Korean Society of Water and Wastewater
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• v.28 no.5
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• pp.561-571
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• 2014

The paper is to estimate willingness-to-pay (WTP) for tap water quality improvement in Busan, using parametric approach in contingent valuation method(CVM). For parametric approach linear logit model and log logit model are employed in double-bounded dichotomous choice format of CVM. For the reliability and the validity of contingent valuation method a survey was conducted for 665 respondents, who were sampled by stratified random sampling method, by personal interview method. The result of mean WTP for the tap water quality improvement in Busan was estimated to be 3,687 won and 3,660 won per month per household, while median WTP being 1,884 won and 1,892 won per month per household, respectively by linear logit model and log logit model. Provided that our sample is broadly representative of the Busan's population, an estimate of the annual aggregated benefit of residential water improvement for all Busan households is approximately 29.7 billion won to 29.8 billion won based on median WTP.

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