Empirical Evidence on Scope Effects in Contingent Valuation of Water Quality Improvement in Man Kyoung River

만경강 수질개선 편익측정을 위한 조건부가치평가에 있어서 범위효과 분석

This paper is to empirically test scope effects proposed to judge the internal consistency of contingent valuation method. The application was illustrated for the case of estimating people's WTP for improving water quality at Man Kyoung River in the Chon Buk area. The CV survey was carefully designed and implemented by carrying out recommendations from the NOAA Blue Ribbon panel. Using a split sample, we conducted the Cochran-Mantel-Haenszel test with the frequency distribution of no responses, calculated the Turnbull low bound mean for WTP, and measured the mean WTP from estimated variation functions. The test results consistently exhibited that the CV estimates of WTP were adequately responsive to the size of water quality changes being offered. The mean WTP for improving water quality suitable for swimming (5,171 and 5,212 won) was significantly larger than that for agricultural use and fishing activity (3,280 and 3,136 won).