• Journal of Korea Port Economic Association
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• v.38 no.3
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• pp.53-68
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• 2022

In this study, the economic value and economic ripple effect of the Jeju Inland Port redevelopment project were estimated. The economic value was estimated from the viewpoint of amenity, the value of non-market goods such as landscape improvement, environmental improvement, and recreation effects. As a result of the estimation, the population was divided into Jeju Island and other regions and the individual's willingness to pay was estimated to be 2,952.9 won in Jeju Island and 4,722.8 won in other regions. On the other hand, the economic ripple effect of the Jeju Inland Port redevelopment project was estimated during the project period and after the completion of the economic ripple effect was estimated. As a result of the estimation, the production inducement value was KRW 84,387 million, the value-added inducement effect was KRW 37,292 million, and the employment inducement value was 5,846 employment when the (direct employment + indirect employment) effect was combined. After the end of the project period, as of 2022, there were 518,000 foreign tourists, and the value-added inducing effect was estimated to be about 149,885 million won.

• Journal of the Korean Institute of Landscape Architecture
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• v.37 no.5
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• pp.42-52
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• 2009

Recreational forests are catching on as places for personal development through recreation, association with people, education about nature, mind relaxation and spiritual peace. However, the value and significance of recreational forests with various functions are easily overlooked. Whoever pays fees for admission to facilities are able to enjoy fresh air, a comfortable environment, and space for rest. It should be taken into consideration whether the fee which customers pay is appropriate for the value of nature they are enjoying. This study is involved in giving the right recognition to the value of recreation and environment by estimating economically the value of the environment in which visitors stay, and presenting the appropriate price. The most efficient way to achieve this goal is through an economic approach, which suggests following established research skills and yielding suitable and accurate amounts of money. The environmental value of a recreational forests is estimated through contingent valuation method(CVM), which is chosen among several methods to estimate public facilities because the value of recreational forests has strong characteristics as public facilities which are not traded in the market. The annual recreation value per person of surveyed recreational forests is Willingness To Pay(WTP) with a mean between about 16,000 won and 25,400 won. The recreation value of one recreational forest surveyed is annually between approximately 1.7 billions won and 2.7 billions won. The annual recreation value of 85 national and public recreational forests is presumed to be between about 140 billions won and 230 billions won. The presumed amount of money is the environment in which visitors can enjoy whenever they invest some money and time. Indeed, it is more than that; it provides visitors with a greater sense of satisfaction and the recognition of the preciousness of nature and the environment.

• Journal of Korean Society of Rural Planning
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• v.18 no.3
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• pp.25-41
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• 2012

The purpose of this study is to quantitatively analyze the social welfare value given to the designated rural settlement zone by the resident-participated site unit plan that the City of Cheongju is newly attempting to draft. Firstly, the costs and benefits from the site unit planning were estimated. Secondly, through literature review especially focussed on the benefit and cost estimation, on-site questionnaire was designed, and then sample residents of the qualifying sites were asked about their willingness to pay, which could make it possible to estimate the monetary value of its benefits by the contingent valuation method (CVM). Finally, the present value of net benefits (PVNB) was estimated through the derived costs and benefits. As a result of analysis, firstly, the present value of net benefits (PVNB) was found to be 7,641 billion won, which indicated that the implementation of district-unit plan would be able to cause sufficient social welfare value for the effected residents. Secondly, in examining the result of individual average amount for willingness to pay through the CVM, the area that benefited the most was found to be the road improvement. Thirdly, as a result of sensitivity analysis, the parameter with the most effects was the discount rate, which suggested that, in carrying out public projects, excessive market interest rates would not be appropriate.

• Journal of the Korean Society of Marine Environment & Safety
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• v.19 no.5
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• pp.417-429
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• 2013

The current study attempted to assess the environmental value of Geum-river estuary for rational management decision-making. To investigate the comprehensive properties of the Geum-river estuary, we applied the contingent valuation method based on multi-attribute utility theory. We surveyed a randomly selected sample of 400 and 600 households of the Geum-river estuary-neighboring area (Jeollabuk-do, Chungcheongnam-do), and other nation-wide large districts (except Jeollabuk-do, Chungcheongnam-do, and Jeju-do), respectively, and carried out person-to-person interviews with subjects on their willingness-to-pay for the estuary conservation and management program. Respondents, overall, accepted the contingent market system and were willing to contribute a significant amount, that is 1,497 won for the residents from the Geum-river estuary-neighboring area and 4,343 won for the residents from other nation-wide large districts on average, per household per year. These results implied that there were large difference between the two groups. The aggregate values of the Geum-river estuary for the estuary-neighboring area and other nation-wide large districts amount to 2.13 and 70.15 billion won, respectively, per year. This quantitative value deduced from the current study, could be a useful baseline fact for any decision-making process particularly in the establishment of management policies for the Geum-river estuary.

• Journal of the Korean Society of Marine Environment & Safety
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• v.24 no.1
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• pp.101-111
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• 2018

The Korean government has been trying to conserve a marine ecosystem that has been shifting due to climate change. As part of this effort, the government designated seventy-seven marine species that have been disappearing and deserve to be protected as endangered managing them specially. To generate basic data to guide policy for these endangered species, their value must be measured. OOf the species declared endangered, coral is particularly threatened by climate change, and its management is important. Accordingly, understanding the potential value of reefs, can be an effective way of proving the benefits of continuous management to decision makers and the general public alike. To this end, we have applied the contingent valuation method (CVM), an economic technique of for valuing a environmental and non-market goods such as a coral reef. A national face-to-face survey of 1,000 randomly selected households was conducted in order to determine the public's willingness to pay (WTP) for conserving coral reefs. A one-and-one-half-bound (OOHB) model was adopted to interpret WTP responses, and a spike model was employed to deal with zero WTP responses. The results show that the conservation value of a coral reef can be estimated at 3,016 won per household per year, statistically significant at the 1 % level. Expanding values to the national population gives an annual value of 58.9 billion won. We can conclude that the public is willing to pay a significant amount to conserve coral reefs.

• Journal of Korea Port Economic Association
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• v.28 no.3
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• pp.235-257
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• 2012

Recently the role of ports has been changed to satisfy flexibly needs of demands in global economy. A new concept for ports is not just a place for international trade but an important nodal point in logistics chain. The changing environment like this trend creates a high degree of uncertainty and leaves port managers confused with the question how to respond effectively to dynamic market. The latest studies provide that the port must have a good hinterland to achieve competitive advantages in a logistics chain. Korean Government announced "The Master Development Plan for Port Logistics Parks in Korea" in 2006. This contains the plan of hinterland construction of Busan New Port to achieve the status of logistics hub in Asian market. Previous studies rely solely on traditional DCF(discounted cash flow) analysis for investment of hinterland. However DCF method does not include irreversibility, uncertainty and the choice of timing for investment project. This thesis introduces a ROPM(real options pricing model) which overcomes the limitations of traditional valuation methods. The option valuations in this study utilize the Black-Scholes model, the binomial model and the MonteCarlo simulation to value investment opportunity of a port hinterland. In this thesis, an attempt is made to modify the NPV criterion by incorporating the real options approach, and its application is demonstrated in a hinterland construction investment plan. This research has conducted an empirical analysis by calculating economic value of the investment for a hinterland of Busan New Port.

• 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.6 no.2
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• pp.1-25
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• 2007

This paper attempts to measure the environmental value of the Seomjin-River estuary that has been comparatively well conserved but is confronted with the threat of its development. Especially, in order to elicit the environmental values of its four attributes, contingent valuation method(CVM) based on multi-attribute utility theory is applied and the CVM survey was rigorously designed to comply with the guidelines. for best-practiced CVM studies. We surveyed a randomly selected sample of 300 and 350 households in the Seomjin-River estuary-neighboring area(Gwangyang, Sooncheon, Yeosu, Hadong, Namhae) and seven large cities(Seoul, Busan, Incheon, Daegu, Daejeon, Gwangju, Ulsan), respectively and asked respondents questions in person-to-person interviews about what they would willing to pay for the estuary conservation and management program. Respondents overall accepted the contingent market and were willing to contribute a significant amount(5,763 won in the Seomjin-River estuary-neighboring area and 1,883 won in seven large cities), on average, per household per year, which implies that there is a large difference between the two. The aggregate values of the Seomjin-River estuary in the estuary-neighboring area and seven large cities amount to 1.52 and 14.05 billion won, respectively, per year. The quantitative values can be utilized in planning and decision-making about development versus conservation of the estuary.

• Journal of Korea Water Resources Association
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• v.56 no.3
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• pp.225-233
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• 2023

Urban rivers and their surrounding environments have been altered due to factors such as rapid economic growth and urban development. This alteration have caused the rivers to lose their original value and become exposed to various pollution, resulting decrease in citizens' quality of life. This study aims to estimate citizens' Willingness To Pay (WTP) for water quality improvement in Suyeong River in Busan. To estimate the non-market value of the Suyeong River, the WTP of Busan citizens for water quality improvement was estimated, applying Contingent Valuation Method (CVM). The WTP for improving the water quality from Grade 4(polluted water) to Grade 2(game fish like bass can live in it) was estimated using the water quality ladder concept of the US Environmental Protection Agency, assuming annual donations for five years. For the CVM, the logistic distribution and Spike Model were adopted. As a result, citizens residing in the surrounding area of Suyeong River expressed a higher WTP. Considering more than half of the Busan citizens are aware of the "conservation of nature and ecosystems" as a major function of the Suyeong River, this higher WTP could serve as a basis for improving the value of urban rivers.

• The Journal of the Korea Contents Association
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• v.21 no.7
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• pp.181-193
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• 2021

Due to the spread of COVID-19, the domestic market was inevitable to face the crisis of tourism industry. Accordingly, most of local festivals decided to cancel or postpone, and have been in difficult situation. In addition, people also have experienced the thrist of cultural activities and tours. However, this situation can also be opportunity to find the clues for activating local festivals in the post-COVID-19 era with estimating the preservation value and deriving the determinants for it. Therefore, this study economically assessed the value of the local festival, Chimac Festival in Daegu, under the hypothetical financial crisis situation for COVID-19. Consequently, monthly income, age and place dependence was found to be influential for Daegu and nearby area citizens to have willingness to pay for the Chimac Festival in Daegu. The result shows that respondents are willing to pay 16,909 on truncated average. Thus, total value of Chimac Festival was estimated as 9.376 billion won.