The Public Value of Reducing the Incidence of Oil Spill Accidents in Korean Rivers

Hye-Jeong Lee, Hyo-Jin Kim and Seung-Hoon Yoo ()
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Hye-Jeong Lee: Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, Korea
Hyo-Jin Kim: Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, Korea

Sustainability, 2018, vol. 10, issue 4, 1-12

Abstract: Oil spill accidents involving cars or boats for transport in rivers can contaminate drinking water sources. During the past ten years, an annual average of forty-six cases of oil spill accidents have occurred in Korean rivers. Because of this, the Korean government is seeking to reduce the incidence of oil spill accidents in rivers by half. This article aims to evaluate the public value of the reduction. Household willingness to pay (WTP) for the reduction was investigated, applying the contingent valuation approach. A survey of 1000 households was carried out in Korea. The data on the WTP were gathered using a dichotomous choice question and analyzed employing the spike model. The mean WTP estimate is obtained as KRW 6188 (USD 5.28) per household per annum, which is statistically meaningful. The total public value expanded to the population amounts to KRW 120.8 billion (USD 103.0 million) per year. The information can be utilized in policy-making and decision-making about the reduction of the incidence of oil spill accidents in rivers by half.

Keywords: oil spill accident; water pollution; willingness to pay; public value; contingent valuation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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