• The Journal of Information Systems
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• v.27 no.4
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• pp.149-165
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• 2018

Purpose As Korean economy has been sluggish in recent years, firms' interest in publicly financed projects has increased due to the relatively increasing proportion in the economy. Since 1999, publicly financed projects in Korea need to undergo preliminary feasibility study to evaluate economic efficiency and policy quality if they are larger than a certain scale. The benefits of public projects are one of the most important factors in the preliminary feasibility study but are difficult to estimate due to their nature. Design/methodology/approach This study estimates the benefits of the agricultural soil information database, a public database in Korea. The method used in the study is the stated preference method which is formally used in Korea's preliminary feasibility study. Data are collected through surveys and a logit model is constructed to be estimated by the maximum likelihood estimation method. Findings As the first study evaluating a public database, this study can be used as a baseline in all public database projects developed in the future. In addition, this study can contribute to improving the understanding of both private companies and public organizations who are interested in the cost-benefit analysis and estimation procedure for the publicly financed projects.

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.3 no.2 s.5
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• pp.55-68
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• 2004

On this research, Contingent Valuation Method which is universally applicable to non market goods and being developed in a field of the environmental economics is used to estimate appropriate value of freeway traffic information. Imaginary scenario is designed to estimate appropriate value of freeway traffic information and major in traffic-related field is used & man-to-man interview carried out to enhance a reliance of questionnaire. Open-ended question and a way of payment card are in use each other. make use of Multiple Regression Model in Contingent Valuation Method of traffic information and find an effect on the value of the traffic information. As a result of research, intention to pay for usage per information is regarded as a somewhat higher but monthly cost is lower than they have to. It is concluded that value and usefulness of the individual information is nod in approval but a majority of user's recognition that publish information must be provided free of charge lowers intention of payment.

• The Journal of the Korea Contents Association
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• v.11 no.6
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• pp.438-448
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• 2011

The purpose of this paper is to enrich storytelling contents for culture and tourism industry and provide the implication for carrying out governmental policy by estimating economic value of storytelling using a Contingent Valuation Method. The empirical result shows that the economic value of storytelling development in culture and tourism industry is annually estimated 16,000 won per person, resulting from logit model and WTP mean method. The willingness-to-pay, degree of support and perception of the policy and culture contents expenditure have meaningful effects on probability of supporting and participating in execution of the policy. The findings imply that the economic value of storytelling development highly increases as the interest and expenditure of culture contents increase. Futhermore, informing storytelling related policy and business to the people will increase economic value of fostering storytelling-based culture and tourism.

• Environmental and Resource Economics Review
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• v.14 no.4
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• pp.793-816
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• 2005

This paper proposes a new answering mechanism called RAM (Risk Answering Mechanism) which can be applied to a contingent valuation method. The RAM is derived from the theory of expected utility maximization under the assumption that there exists an uncertainty in a nonmarket good of interest. In RAM, a respondent would accept an uncertain offer only if his or her WTP for the mean of the offer is large enough to exceed the bidding price by more than a risk premium. This is in a striking contrast with a traditional answering mechanism (TAM) in which the WTP is simply compared with the bidding price. Therefore, the TAM would underestimate the WTP by a risk premium without considering the uncertainty a respondent may face. An empirical comparison is made between RAM and TAM using a survey data on the Tong river. It is found that underestimation problem is very serious in the TAM.

• Journal of Ocean Engineering and Technology
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• v.20 no.6 s.73
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• pp.108-113
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• 2006

For the past scores of years, our country has driven its land development toward economic growth as its top priority. ut, as a result that almost all developments been promoted excepting environmental values, in fact, they've incurred some bad environmental effects desirable. Especially, as representative examples, we can raise some issues such as damages of the foreshore or coast wet lands by seas reclamation, and coast corrosion by building up of rivers or coast constructions. Recently, many people started to have great interests in businesses of environment preservation or recycling to minimize effects of these environmental matters. However, before beginning public businesses of non-commercial goods relevant to the seas environments, there seemed to be some limitations that can not accomplish under consideration of environmental sides at the same time while performing economic validities and efficiencies with environmental economic analysis, which is already effective in countries advanced in environment, it's a very meaningful course in that citizens' opinions are being influenced in seas environmental policies for their efficient execution. In this research, after modeling coast corrosion preventives with Jeong-am coast of Gangwon Province, and using Contingent Valuation Method being widely used of value measuring methods on Non-commercial goods, we've appreciated environmental economy's validity of construction works and the scale of environmental economic value of beach restoration work.

• Proceedings of the Korean Association for Survey Research Conference
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• 2001.04a
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• pp.83-107
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• 2001

The contingent valuation method used survey questions to elicit people's preferences for public goods by finding out what they would be willing to pay for specified improvement in them. The method is thus aimed at eliciting their willingness to pay in money amounts. It circumvents the absence of markets for public goods by presenting consumers with hypothetical markets in which they have the opportunities to buy the good in question. The hypothetical markets may be modeled after either a private goods market or a political market. Respondents are presented with material, often in the course of a personal interview conducted face to face. An on-site survey was conducted to 1107 randomly selected P-mountain users using a dichotomous choice questionnaire for the contingent valuation method. Seventeen different bid sets were chosen ranging from the lowest bid of 300won to the highest bid of 2,100won to elicit a reasonable entrance fee in the suggested bid had been determined, and the expected value of willingness to pay was estimated using binary-logit model. The average public value of P-mountain per individual user was estimated to be 1,055.92won∼1,995.61won according to the binary-logit model. The economic value of this P-mountain which includes both use value and existence value can be determined by aggregating the average value giving total willingness to pay for the entire population, in this case 5.491 billion ∼ 10.377 billion.

• Survey Research
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• v.2 no.2
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• pp.83-107
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• 2001

The contingent valuation method uses survey questions to elicit people's preferences for public goods by finding out what they would be willing to pay for specified improvement in them. The method is thus aimed at eliciting their willingness to pay in money amounts. It circumvents the absence of markets for public goods by presenting consumers with hypothetical markets in which they have the opportunities to buy the good In question. The hypothetical markets may be modeled after either a private goods market or a political market. Respondents are presented with material, often in the course of a personal interview conducted face to face. An on-site survey was conducted to 1107 randomly selected P-mountain users using a dichotomous choice questionnaire for the contingent valuation method. Seventeen different bid sets were chosen ranging from the lowest bid of 300won to the highest bid of 2, 100won to elicit a reasonable entrance fee in the hypothetical market. The probability of an individual user's willingness to pay for the suggested bid had been determined, and the expected value of willingness to pay was estimated using binary-1ogit model. The average public value of P-mountain per individual user was estimated to be 1,055.92won ~ 1,995.61won according to the binary-logit model. The economic value of this P-mountain which includes both use value and existence value can be determined by aggregating the average value giving total willingness to pay for the entire population, in this case 5.491 billion ~ 10.377 billion.

• Environmental and Resource Economics Review
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• v.20 no.1
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• pp.119-153
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• 2011

This study reviews various aspects of model formulating processes of dichotomous choice responses of the contingent valuation method (CVM), which has been increasingly used in the preliminary feasibility test of Korea public investment projects. The theoretical review emphasizes the consistency between WTP estimation process and WTP measurement process. The empirical analysis suggests that two common parametric models for dichotmous choice responses (RUM and RWTP) and two commonly used probability distributions of random components (probit and logit) resulted in all most the same empirical WTP distributions, as long as the WTP functions are specified to be a linear function of the bid amounts. However, the efficiency gain of DB response compared to SB response were supported on the ground that the two CV responses are derived from the same WTP distribution. Moreover for the exponential WTP function which guarantees the non-negative WTP measures, sample mean WTP were quite different from median WTP if the scale parameter of WTP function turned out to be large.

• Journal of Environmental Policy
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• v.13 no.3
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• pp.21-42
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• 2014

Abandoned roads, abandoned expressways included, cause a lot of problems such as contamination and environmental damages to underground water, fragmentation of wildlife habitats yet they are not appropriately maintained or managed because of jurisdictional conflicts and, often more importantly, insufficient budget of governments. The restoration of abandoned roads is known to benefit society and its constituents by providing better environment and higher living standards but the monetary value of the benefit is hard to measure because of non-marketability of the good that the restoration brings about. In this case, the contingent valuation method(CVM) is most powerful in evaluating non-marketable value of goods and hence it is used widely. We also used the CVM to value the benefit of restoration of abandoned expressways to find out: about 40% of total households are willing to contribute positive amount for restoration; better awareness of environmental issues leads to higher willingness-to-pay.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2011.10a
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• pp.575-578
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• 2011

This study attempted to estimate the subscribers' utility for IMT mobile data services by measuring willingness to pay(hereafter WTP). A survey to potential IMT subscribers has been done and contingent valuation method(hereafter CVM) was applied. CVM is generally believed to be one of the most popular methods used for quantifying the value of non-market goods or services particularly by asking respondents of WTP. The result of this study showed that WTP for the IMT mobile data service is 33,283 won per month. Taking into account the current average voice ARPU(Average Revenue Per User), we could estimate the subscribers' utility for 4G mobile voice and data services.