Economic Valuation of the Aquatic Biodiversity Conservation in South Korea: Correcting for the Endogeneity Bias in Contingent Valuation

Choi, Ik-Chang; Kim, Hyun No; Shin, Hio-Jung; Tenhunen, John; Nguyen, Trung Thành

doi:10.3390/su9060930

Cited by 10 publications

(8 citation statements)

References 64 publications

(63 reference statements)

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“…Additionally, we recommend including questions on what consumers understood shade grown coffee to be. Both subjective (Choi, Kim, Shin, Tenhunen, & Nguyen, ; Teisl & Roe, ) and objective knowledge (LaRiviere et al, ) can influence individual valuation. Additionally, better understanding objective knowledge might elucidate whether consumers with lower knowledge of shade‐grown practices are overestimating potential benefits.…”

Section: Discussionmentioning

confidence: 99%

Comparing stated and realized preferences for shade‐grown vs. conventionally grown coffee

Klimas

Webb

2017

Int J Consumer Studies

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We used both stated preference and revealed preference data to estimate willingness to pay (WTP) for shade-grown coffee as compared with conventionally grown coffee. Stated preference data was collected using contingent valuation studies. Revealed preference data came from an experiment where all survey participants received a personally identifiable voucher redeemable for a free bakery item when the holder purchased a coffee. We compared estimates of mean and median WTP a price premium for shade-grown coffee from stated preference data with similar estimates from revealed preference data. We used a logit model to evaluate the effect of explanatory variables (measures of environmental attitudes, personal norms for pro-environmental behaviour and demographic variables) on respondents' WTP a price premium for shade grown coffee. Model parameters were estimated using the maximum likelihood approach. Respondents with higher scores on measures of environmental attitudes and personal norms for proenvironmental behaviour were, on average, willing to pay more for shade-grown coffee. While this paper examined a specific case, purchase of shade-grown coffee, our results confirmed that stated environmental concern was a good predictor of pro-environmental behaviour. We found that mean and median WTP estimates from stated preference methods were higher, but not significantly different than mean and median WTP estimates from actual purchases, indicating convergent validity between stated and realized preference methods. The majority of individuals both stated WTP a price premium and purchased shade-grown coffee at a price premium. We did, however notice some interesting behaviour at the individual level where stated preferences under-predicted realized preferences at low price-premia and over-predicted realized preferences at high price premia.

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Section: Discussionmentioning

confidence: 99%

Comparing stated and realized preferences for shade‐grown vs. conventionally grown coffee

Klimas

Webb

2017

Int J Consumer Studies

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“…In addition, we limited the respondents' age to 20-64 years including the working age population, because people who are younger or older have difficulties in responsibly responding to the WTP question [4,5,10,20,[24][25][26][27][28].…”

Section: Samplingmentioning

confidence: 99%

“…For this purpose, the article attempts to adopt the contingent valuation (CV) technique to derive the public's willingness to pay (WTP) for conserving the SOS. The public's WTP can be interpreted as the environmental conservation value of the SOS [5,6]. The rest of the article comprises four sections: the methodology employed in the study, the WTP model, the results and a discussion of them, and conclusions.…”

Section: Introductionmentioning

confidence: 99%

The Environmental Conservation Value of the Saemangeum Open Sea in Korea

2017

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Abstract:The Saemangeum open sea (SOS), which refers to the outer sea of the Saemangeum seawall in Korea, is being threatened by contamination caused by the Saemangeum development project. The policy-makers need information on the environmental conservation value of the SOS for informed decision-making about the SOS. This paper attempts to measure the environmental conservation value of the SOS. To this end, the public's willingness to pay (WTP) for conserving the SOS is derived from a 2015 contingent valuation survey of 1000 Korean households comprising 400 households residing in the Saemangeum area and 600 households living in other areas. The authors employ a one-and-one-half-bounded dichotomous choice question format. Moreover, the spike model is adopted to analyze the WTP data with zero observations. The mean annual WTP values for both areas are calculated to be KRW 3861 (USD 3.26) and KRW 3789 (USD 3.20) per household, respectively. They are statistically significant at the 1% level. When the sample is expanded to the whole country, it is worth KRW 70.9 billion (USD 59.8 million) per annum. Therefore, conserving the SOS will contribute to the Korean people's utility and can be done with public support. The value provides a useful baseline for decision-making for the SOS management.

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“…The use of CVM to measure consumers' WTP for non-market environmental goods or services has been widely employed, including the economic valuation of freshwater services provided by lakes or wetlands (e.g. Choi et al, 2017;Hammitt et al, 2001;Loomis et al, 2005).…”

Section: Contigent Valuation Methodsmentioning

confidence: 99%

Contingent Valuation of Lake Rawapening as a Source of Drinking Water

Irawan

2019

J. Ilmu Lingk.

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The aim of this study is to estimate willingness to pay (WTP) of local residents, by applying the contingent valuation method as a surcharge on their water bill, for a given improvement of lake ecosystem for ensuring the sustainability of freshwater supply in term quantity and quality as demanded by public water utility. The survey was conducted in Semarang regency involving 116 respondents in three villages that received clean water services from Lake Rawapening. The mean of WTP was estimated to be 6,055.54 rupiahs (0.433 US$) per month for each household, approximately equivalent to 9.26% of the average monthly water bill of the households. The results revealed that younger and educated respondents, households with higher income and with fewer members were, on average, were willing to pay more. This study also demonstrated that households’ ownership of groundwater wells was a hindering factor for contributing to improving lake’s ecosystem. The results of this study can assist decision-makers to understand the public demand for improved Lake Rawapening ecosystem and to formulate better environmental policies.

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Economic Valuation of the Aquatic Biodiversity Conservation in South Korea: Correcting for the Endogeneity Bias in Contingent Valuation

Cited by 10 publications

References 64 publications

Comparing stated and realized preferences for shade‐grown vs. conventionally grown coffee

Comparing stated and realized preferences for shade‐grown vs. conventionally grown coffee

The Environmental Conservation Value of the Saemangeum Open Sea in Korea

Contingent Valuation of Lake Rawapening as a Source of Drinking Water

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