Ocean and Polar Research

Korea Institute of Ocean Science & Technology (한국해양과학기술원)
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Analyzing an Economic Feasibility for Restoration/Creation of Artificial Tidal Flats

인공갯벌 조성에 관한 경제적 타당성 분석

  • 남광현 (한국해양연구원 정책조정실) ;
  • 오위영 (한국해양연구원 정책조정실)
  • Published : 2003.12.31
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Abstract

The purpose of this paper is to investigate economic feasibility of creating artificial tidal flats using cost-benefit analyses. We assumed that the cost factors are associated with designing, construction and monitoring, and the benefit factors are associated with fisheries production, habitation, prevention of disasters, water purification, aesthetic value and existence value. First, for analyzing economic feasibility, the scenario suggests that a design can be made in a year, construction can be completed in three years and monitoring must be made for 20 years. Assuming the discount rate of 7.5%, economic feasibility analyses showed that B/C was 2.26 and IRR was 14.50. This study indicated there is economic validity of implementing creation of artificial tidal flat. In addition, we carried out a sensitivity analysis at the change of discount rate and restoration rate. The result of sensitivity analysis clearly showed that economic validity is low when discount rate is over 15%, and changes in restoration rate did not significantly effect on the economic validity.

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  1. Estimating Benefits of Improving Water Quality in the Largest Remaining Tidal Flat in South Korea vol.32, pp.3, 2012, https://doi.org/10.1007/s13157-012-0282-z