Economic Valuation of Improving Environmental Degradations in Korea Using Choice Experiment

Hyun-ju Kim and Yoon Lee
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Hyun-ju Kim: Global Sustainable Development Economic Institute, Sunmoon University, Asan 31460, Korea
Yoon Lee: Department of International Economics and Trade & Global Sustainable Development Economic Institute, Sunmoon University, Asan 31460, Korea

Sustainability, 2022, vol. 14, issue 3, 1-15

Abstract: This study aims to quantitatively identify the economic value of the comprehensive improvement of environmental degradations caused by climate change. The research method applied to that is the choice experiment. Fine particulate matter, algae bloom, and heat waves were selected as individual attributes constituting environmental problems. It was found that the willingness to pay could not be induced for any level of improvement in algal bloom. It was concluded that if heat waves improved to the medium level where the number of heat-related illnesses and estimated deaths decreased by 50% compared to the current level, there would be a loss in value by USD 13.33. The value of improving environmental problems is USD 7.69 per household per year, and the improvement of fine particulate matter was the highest value attributed by consumers. This study is significant in that it comprehensively evaluates severe environmental problems, reflects their priorities and importance, and assesses the value for each level. It provides important foundational data for establishing effective budget input strategies to maximize consumer benefits and aids in the preparation of effective policies by establishing more detailed goals to achieve net-zero carbon emissions and the Sustainable Development Goals.

Keywords: willingness to pay; conditional logit model; fine particulate matter; algae bloom; heat waves (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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