Next Article in Journal
Assessment of the Air Pollution Level in the City of Rome (Italy)
Previous Article in Journal
The Significance of Consumer’s Awareness about Organic Food Products in the United Arab Emirates
Article Menu

Export Article

Open AccessArticle
Sustainability 2016, 8(9), 834; doi:10.3390/su8090834

The Economic Value of the National Meteorological Service in the Korean Household Sector: A Contingent Valuation Study

Graduate School of Energy & Environment, Seoul National University of Science and Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, Korea
*
Author to whom correspondence should be addressed.
Academic Editor: Marc A. Rosen
Received: 9 July 2016 / Revised: 4 August 2016 / Accepted: 12 August 2016 / Published: 23 August 2016
View Full-Text   |   Download PDF [402 KB, uploaded 23 August 2016]   |  

Abstract

The meteorological service (MS) in Korea is provided by the Korea Meteorological Administration (KMA), a governmental organization. This study attempts to measure the economic value of the national MS in the Korean household sector. Economic theory indicates that the economic value of a service is the area under the demand curve, which is the sum of the actual expenditure and the additional willingness to pay (WTP) for the service. The actual expenditure is well known, but the additional WTP is not. Thus, we assess the additional WTP for the national MS, conducting a contingent valuation survey of 1000 randomly selected households in Korea in 2014. We use a one-and-one-half-bound dichotomous choice question to derive the WTP responses and apply a spike model to deal with WTP responses of zero. The mean additional WTP per household is computed as KRW 860 (USD 0.75) per month and is statistically significant at the 1% level. Given that the monthly expenditure for the MS is KRW 1459 (USD 1.26) per household as of 2013, the economic value of the national MS is computed as KRW 2319 (USD 2.01) per household per month. Expanding the value to the national population gives us KRW 513.6 billion (USD 444.9 million) per year. View Full-Text
Keywords: meteorological service; economic value; contingent valuation; willingness to pay; spike model meteorological service; economic value; contingent valuation; willingness to pay; spike model
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Park, S.-Y.; Lim, S.-Y.; Yoo, S.-H. The Economic Value of the National Meteorological Service in the Korean Household Sector: A Contingent Valuation Study. Sustainability 2016, 8, 834.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top