Next Article in Journal
Modelling Peatland Productivity by Water Table Depth or Near-Surface Water Contents via the DIMONA Online Platform
Previous Article in Journal
Non-Point Source Pollution Risk Assessment in Karst Basins: Integrating Source–Sink Landscape Theory and Soil Erosion Modeling
 
 
Font Type:
Arial Georgia Verdana
Font Size:
Aa Aa Aa
Line Spacing:
Column Width:
Background:
Article

Data-Based Analysis on the Economic Value of Fishery Observer Programs in International Fisheries Management: Insights from Korea’s Distant Water Fisheries

1
Department of Marine & Fisheries Business and Economics, Pukyong National University, Busan 48513, Republic of Korea
2
Korea Maritime Institute, Busan 49111, Republic of Korea
*
Author to whom correspondence should be addressed.
Water 2025, 17(1), 133; https://doi.org/10.3390/w17010133
Submission received: 27 November 2024 / Revised: 29 December 2024 / Accepted: 5 January 2025 / Published: 6 January 2025

Abstract

:
This study estimated the economic value of international fisheries observer programs for Korean distant water fisheries using the contingent valuation method (CVM). The model included economic factors, socio-demographic variables, and proxy variables that reflected participants’ familiarity with seafood consumption. An online survey was conducted with 16,924 participants, of whom 1000 provided usable responses (resulting in a final response rate of 5.9%). The survey results indicated that 74.2% of households were willing to pay to support international fisheries observer programs. The weighted average willingness to pay (WTP), adjusted for the participation rate, was estimated at USD 7.01 per household, leading to an annual aggregated WTP of USD 153,097,825. These findings highlight the significance of international fisheries observer programs in promoting the sustainability and effective management of Korean distant water fisheries.

1. Introduction

The management of distant water fisheries is an important means of achieving the sustainability of fishery resources. However, due to the special nature of distant water fisheries and the difficulty of managing them, illegal, unreported, and unregulated (IUU) fishing occurs, which has economic, social, and environmental impacts on the fishing industry [1]. IUU fishing negatively affects the food security and economies of coastal states, and most importantly, it destroys marine ecosystems and hinders the sustainability of fisheries [2,3,4,5,6].
The international fisheries community is making multifaceted efforts to improve the sustainability of marine ecosystems by eradicating IUU fishing [7,8,9]. At the core of these efforts is the monitoring of fishing activities through the observer program. An observer is a trained biological technician who collects data on the catch and discard of fish by commercial fishing vessels. An observer program employs trained human observers who closely monitor and document events on board vessels or through electronic monitoring devices [10].
One of the leading countries operating an international observer program is the Republic of Korea. As an active player in distant water fisheries, Korea boasts over 60 years of experience in this field. The country operates approximately 39 fishing companies with 204 distant water fishing vessels and deploys 67 international observers annually (Figure A1). The observer program for Korea’s distant water fisheries is governed by Article 21, Paragraph 3 of the Distant-Water Fisheries Development Act (“Promotion of Overseas Fishery Resource Surveys and Research”). The Korean government covers half of the annual salaries of international observers through a matching fund system, allocating USD 670,000 from the national budget [11]. Its implementation regulations are specified in the guidelines for international observer management established by the National Institute of Fisheries Science (NIFS). Since 2002, the NIFS has undertaken comprehensive responsibilities, including recruiting, training, deploying, and managing international observers [12]. However, following a revision of the relevant law in June 2019, responsibilities related to recruiting, deploying, and managing observers—excluding scientific investigation—were transferred to the Korea Fisheries Resources Agency (FIRA). The NIFS continues to handle education for scientific investigation, debriefing of research findings, and reviewing and analyzing collected data.
However, the establishment of Korea’s international observer program is rooted in a painful historical background within the distant water fisheries industry. In 2013, the Republic of Korea was designated by the EU as a “non-cooperating third country” for IUU prevention measures, but the Korean government has made efforts to address IUU issues through the revision of the Distant Water Fisheries Development Act as part of its efforts to strengthen IUU countermeasures. Through these measures, Korea has improved the monitoring system for distant water fishing. Specifically, the following measures were taken to improve the monitoring system for distant water fisheries: strengthening the observer program, installing vessel monitoring systems (VMS), operating fisheries monitoring centers (FMCs), shortening the reporting cycle, assisting in the withdrawal of and reduction in the distant water fleet in the waters of West Africa, and strengthening the port state control. As a result, the EU ended its action against the country in April 2015 [13,14]. These fisheries management processes, including monitoring, control, and surveillance, contribute to preventing IUU fishing and enhancing the sustainability of fisheries [9,15].
Despite the significance of managing distant water fisheries, academic research on these efforts remains limited. While some scholars have highlighted the importance of institutional factors, quantitative evaluations of these policies are scarce. This study utilizes survey data to estimate and quantify the economic value of international fisheries observer programs—key tools in international fisheries management—in order to illustrate the potential value of these policy measures.
This work makes a significant contribution as the first to estimate the economic value of international fisheries observer programs using the contingent valuation method (CVM). The factors influencing the willingness to pay in the model estimation were also investigated. By incorporating socio-economic factors and consumer interest—particularly among those directly interacting with fishery products—into the estimation model, we developed a comprehensive approach that integrates psychological aspects. Additionally, follow-up questions allowed us to capture the public value attributed to fisheries observer programs by respondents, offering critical insights for future policy development.

2. Methods

The researchers followed the research procedure to conduct a systematic survey, aiming to quantify the economic value of the Korean fishery observer program in distant water fisheries. The contingent valuation method (CVM) and choice experiments (CE) are two prominent non-market valuation techniques used to estimate the economic value of environmental goods and services. Each method has advantages and limitations, particularly in contexts where total economic value, including non-use values, is prioritized.
Recently, CE has been considered more rigorous because it offers a more nuanced approach by allowing respondents to make trade-offs between different attributes of a good or service. This approach is based on Lancaster’s characteristics theory of value, which posits that consumers gain utility from the attributes of a product rather than the product as a whole [16]. However, the continued use of CVM is justified in contexts where total economic value is prioritized, particularly for non-market goods with significant non-use values. The method’s ability to capture the full spectrum of values associated with environmental resources makes it an essential tool for policymakers and researchers alike [17]. The researchers utilized CVM in the present research. The entire analytical procedure is outlined in Table 1.

2.1. Survey Design

To acquire a demographically balanced sample, the researchers used a major online survey company in South Korea, conducting a web-based survey in 2022. The company specializes in online panel building and administering research surveys. The survey panel represents typical demographic information of the Korean population, such as gender, age groups, and location. The survey targets were adults older than twenty and living in South Korea. Before the survey, a pilot test with a 30-member focus group was implemented to examine their understanding of the survey questions.
The survey participants played a crucial role in the research. They answered questions regarding their willingness to pay to support the fishery observer programs in distant water fisheries and their perception of the observer program’s public value. The survey questionnaires were distributed to 16,924 panel members, and we received 1222 initial responses. However, the researchers excluded responses from survey participants who displayed signs of careless answering. This included cases where the response time was excessively short or when follow-up questions after the CVM (contingent valuation method) items were not adequately answered. As a result of this quality check, a total of 1000 usable samples were obtained, representing a usable response rate of 5.9%.
The survey instrument was comprised of two parts. The first part measured the willingness to pay (WTP) to support the Korean fishery observer program in distant water fisheries. The second part examined the demographic information of the survey participants and their perceptions of supporting the observer program.
The WTP of survey respondents was measured by their responses to the increase in income taxes resulting from implementing the fishery observer program. The survey began with two-minute explanatory video footage on the Korean fishery observer program in distant water fisheries (Figure 1 and Table 2). Next, a randomly selected bid amount on an income tax increase was proposed to determine participants’ WTP for supporting the observer program. The survey contained preference questions that required “yes/no” responses. The initial bids in the current study were KRW 1000 (approximately USD 0.77), 3000, 5000, 7000, 9000, 12,000, 15,000, and 20,000.

2.2. Analytical Procedure

The contingent valuation method (CVM) estimates the value of a hypothetical good that does not exist in the market, such as a policy program. In this study, we employed the double-bounded dichotomous choice (DBDC) model, which is representative of CVM estimation methods. The DBDC survey of willingness to pay follows a logical process. It starts with a question about the initially proposed amount for a hypothetical good. If the respondent answers ‘yes’, they are then offered twice the initial offer. For those who answered ‘no’, a second question was asked, and the amount was reduced to half of the initial proposal. In this case, the double-bounded CVM model has four possible cases: (i) yes–yes case, (ii) no–no case, (iii) yes–no case, and (iv) no–yes case. The likelihoods of such cases are π y y , π n n , π y n , a n d   π n y , respectively. The log-likelihood function takes the following equation [18]:
l n L D θ = i = 1 N { d i y y l n π y y ( B i , B i u ) + d i n n l n π n n B i , B i d + d i y n l n π y n B i , B i u + d i n y l n π n y B i , B i d } ,
where d i y y , d i n n , d i y n ,   a n d   d i n y are binary indicator variables representing the survey participant’s response; B i , B i u ,   a n d   B i d are the bid amounts for the ith survey participants.
To comprehensively examine the survey data, we utilized STATA 18 [19]. In particular, this study employed the “doubleb” command, a user-written tool developed by Lopez-Feldman [20], using maximum likelihood to estimate the double-bounded dichotomous choice model for CVM. The CVM estimation model was designed to be comprehensive, incorporating socio-demographic variables (i.e., gender, age, and household size), an economic variable (i.e., household income), and proxy variables for participants’ seafood engagement (i.e., the frequency of seafood consumption per week, seafood online purchasing, and online information for seafood consumption). This model was a departure from traditional econometric models (e.g., consumer demand model) that primarily focus on economic variables [21], as it aimed to reflect survey participants’ engagement using proxy variables measuring actual behaviors. The weighted average WTP of households in South Korea was calculated after estimating participants’ WTP for supporting the international observer program; by using such information, the annual public benefit of the program was estimated.

3. Results

3.1. Descriptive Information

Table 3 displays the definition and descriptive information of the samples. Gender and marital status were represented as dummy variables with binary values. The results indicate that half of the survey participants were male. The average age was 42.9 years, and the average gross monthly household income was approximately KRW 5.07 million (USD 3901). The average family size was 2.961.
Table 4 shows the distribution of responses by bid amount, providing an intuitive understanding of respondents’ reactions at different bidding levels. The double-bounded choice modeling involves asking respondents about the bid amount twice to enhance the accuracy of estimation. This approach yields results such as those presented in Table 4, providing a more detailed understanding of respondents’ preferences and their sensitivity to varying bid amounts. Notably, the proportion of “yes” responses decreases as the bid amount increases. This pattern aligns with the economic principle known as the law of demand, which states that all else being equal, the quantity demanded decreases as the price of a good or service rises [22]. By examining these response patterns, the table highlights respondents’ sensitivity to changes in bid amounts, providing valuable insights into their decision-making behavior.

3.2. Estimation Results

The WTP for supporting the international fishery observer program, estimated using the double-bounded choice modeling, yielded significant findings, as shown in Table 5. Our results highlight the importance of certain proxy variables for consumer seafood engagement (i.e., the frequency of seafood consumption, online seafood purchasing, and acquiring online seafood information). These variables are statistically significant, while economic variables such as household income and gender are not (Table 5, p-values). Importantly, our findings emphasize the crucial role of consumer engagement with seafood in determining their willingness to pay. Those who frequently consume seafood, for instance, are more likely to have a higher WTP than those who do not. This emphasizes the relevance and significance of our study—individuals with a strong interest in seafood are more likely to pay a premium for supporting sustainable seafood production.
Using the mean WTP from the model estimation results, the authors calculated the annual WTP for the program, which is USD 9.45 (Table 6, Coefficient). A linear combination of significant variables with the mean values obtained such results [20].
According to the survey results, 74.2% of survey participants agreed to pay to support the international fishery observer program. After two rounds of CVM questions, a follow-up question was asked regarding the willingness to pay for the program, and the final rate was calculated. Stratified sampling was employed to extract a representative sample, ensuring the generalizability of the results. Consequently, we assumed that the sample size (n = 1000) was sufficiently large to represent the entire Korean population.
Considering this, we calculated the weighted average WTP at USD 7.01 per household per year (Table 7, weighted average WTP). We applied the population projection information of South Korea to calculate the aggregate public value of the fishery observer program [23]. With 21.8 million households in 2023, the annual public benefit, measured as the aggregate willingness to pay (WTP), is estimated at USD 153 million (Table 7, Annual public benefits).

3.3. Reason for Supporting the International Fishery Observer Program

In addition to estimating the public benefits of fishery observer programs, this study attempted to address a key research question: examining the reasons for and against such policies. This investigation provided qualitative information that not only aided in interpreting the findings but also directly informed the formulation of policy recommendations. Furthermore, understanding the public’s perception of the policy can offer policymakers a clear and compelling rationale for its implementation. During the survey, respondents who supported the policy were asked follow-up questions about their motivations, while those who did not support it were asked about their reasons for opposition. This approach allowed us to thoroughly explore the public’s perception of the policy.
According to the survey results presented in Table 8, most respondents supported the policy primarily to combat illegal fishing and protect the marine environment. The following common reason was the desire to consume eco-friendly seafood, followed by preventing marine pollution, protecting endangered species, and promoting sustainable fisheries.
Table 9 shows that the main reasons cited by respondents who did not support the program were primarily financial concerns. Many indicated they already paid a significant amount in taxes or could not afford to pay more. Others felt the policy was not directly relevant to them, and some questioned the effectiveness of the observer program. Financial burden was a more common reason for non-support than doubts about the program’s effectiveness. These results suggest a general agreement on the program’s public benefits despite the financial concerns.

4. Discussion and Conclusions

This study developed a CVM model incorporating economic, socio-demographic, and proxy variables that measured participants’ familiarity with seafood consumption. The authors conducted an online survey to determine the willingness of survey participants to support international fishery observer programs by paying a specific income tax per household. The program aims to maintain the sustainability of international fisheries and resources. According to the survey, 74.2% of the households were willing to pay for the international observer programs for Korean distant water fisheries. It indicated that the majority of citizens were supportive of the program. Significant variables affecting this willingness to pay (WTP) are demographic variables (age and household size) and seafood consumer behavior, such as online purchasing, online seafood information, and the frequency of seafood consumption. Economic variables such as household income did not affect survey participants’ WTP. These results were somewhat contrary to the hypotheses set in this study. Economic theory states that income increases the demand for normal goods, but the results of this study show that the household income level has no positive or negative impact on willingness to pay to support the program. Considering the proportion of protest respondents, the weighted average WTP was estimated at USD 7.01 per household. Considering the Korean population status in 2023, the annual aggregated WTP was USD 153,097,825. Such results show the value of fishery observer programs to distant water fisheries. This value reflects the public interest in their functions, which contribute to the sustainable development of the distant water fisheries industry by preventing illegal fishing.
In this study, we aimed to identify the specific values, preferences, and perceptions of respondents regarding the program by using a proxy variable to represent their level of interest in fisheries products. To gain further insights, we asked follow-up questions about why they would pay or their reasons for refusing to pay. Of the respondents who were willing to pay, 31.3% wanted to prevent illegal fishing, 22.4% aimed to preserve and protect the marine ecosystem, and 15.9% desired to consume eco-friendly seafood. Conversely, among those who refused to pay, 35.3% felt they already paid enough taxes, 25.2% could not afford additional costs, and 10.9% did not trust the expected benefits of the fishery observer programs. Such results highlight fishery observer programs’ significant values for distant water fisheries, particularly in their role in preventing illegal fishing and promoting sustainable development. The willingness of respondents to pay for these programs reflects a strong public interest in ensuring the sustainability of marine resources, with many supporting their environmental benefits, such as illegal fishing prevention and ecosystem preservation. According to follow-up questions after the CVM survey, respondents indicated that they are willing to support this program because of its value in improving the sustainability of the fisheries sector. However, the reasons for refusal to pay also provide insight into public sentiment, showing that financial constraints, existing tax burdens, and skepticism about the effectiveness of the programs are major barriers. This suggests that, for broader public acceptance and support, it is crucial to effectively communicate the tangible benefits of fishery observer programs and address public concerns about affordability and trustworthiness.
To the best of the authors’ knowledge, this study is the first to estimate the economic value of an international observer program, and thus, there are no previous studies for direct comparison. However, there are numerous previous studies that evaluate the value of policy initiatives aimed at enhancing sustainability in the fisheries sector. Therefore, this study reviews key previous research, focusing on value evaluation and the influencing variables that directly affect respondents’ value preferences.
Demographic variables, one of the main influencing variables, were significant in previous fisheries policy studies. Kang et al. (2021) estimated the economic value of the offshore fishery resource enhancement project [24]. Since the project aims to increase fishery resources to maintain the sustainability of the fisheries industry, it is considered appropriate to compare the studies. The study found that among the demographic variables, household income, gender, and age were statistically significant. Specifically, being male and having a higher age were positively correlated with willingness to pay. Kim et al. (2020) estimated the economic value of marine forests, and it is considered appropriate to draw a comparison in terms of promoting the sustainability of marine ecosystems. Their research results showed that age, gender, and education were statistically significant [25].
Choi et al. (2020) estimated the economic effects of implementing marine biodiversity improvement projects and found that among the demographic variables, gender, age, and education level were statistically significant [26]. However, in this study, household income level was not statistically significant, and age and household size were significant.
These results are consistent with the results of Malinauskaite et al. [27]. Their study estimated the economic value of a whale sanctuary expansion project and found that younger age, female gender, higher education level, and smaller household size were positively associated with willingness to pay.
In terms of household income, this study, along with Kim et al. (2020) and Malinauskaite et al. (2020), found that income was not statistically significant [25,27]. In general, it is expected that higher income levels correspond to a better understanding of the value of the environment and the public sector, leading to a greater willingness to pay or spend more on them. However, contrary to this general hypothesis, the findings suggest that most respondents, regardless of their income level, agreed on the importance of the environment and the public sector, as these align with their core values. In the context of sustainability policy and programs, the willingness to pay (WTP) for environmental goods and services is a critical metric for understanding public support and guiding policy decisions. However, in some cases, household income does not significantly influence WTP [28]. Even at the same income level, understanding the environmental benefits may have a greater influence on WTP. Mandell and Wilhelmsson emphasized that buyers’ valuations of environmental characteristics in housing are influenced by their awareness and attitudes toward sustainability rather than just their economic capacity [29]. This suggests that individuals who prioritize environmental sustainability may exhibit a higher WTP, as their motivations are rooted in values and beliefs about environmental stewardship.
This study also examined the differences in the willingness to pay according to the level of interest in fisheries products and fisheries through proxy and socio-economic variables. The proxy variables are the degree of information obtained on seafood consumption online, the frequency of online seafood purchases, and the frequency of seafood consumption. The study results showed that all proxy variables for interest were significant. These results are consistent with Malinauskaite et al. [27]. Their study found that interest in specific issues, such as whale protection, affects economic value.
In studies measuring economic value in fisheries management and policy, follow-up questions are often asked to explore reasons after the value estimation question. The survey results indicated strong public support for international fishery observer programs, highlighting their alignment with critical public values such as legal compliance, environmental conservation, and sustainable resource management. The high priority placed on preventing illegal fishing reflects widespread public concern over lawful fishing practices, emphasizing the need for effective enforcement of regulations. Environmental conservation is another key driver, with substantial support for preserving marine ecosystems, consuming eco-friendly seafood, and preventing marine pollution. Such results emphasize the perception of these programs as vital tools for environmental stewardship.
When promoting policy initiatives to promote sustainability, it is necessary to specifically inform the general public how these public values are to be enhanced to gain active support. Policymakers can leverage this robust public support to strengthen the legitimacy of observer programs, positioning them as essential mechanisms for promoting legal compliance, environmental protection, and the sustainability of fisheries.
Even though the present study provides valuable insights into the fisheries management field, it is not free from limitations. This study estimates the economic value of fishery observer programs using traditional CVM research techniques. This method is useful for directly estimating the economic value of a specific policy, but it has limitations in distinguishing between and estimating the detailed benefits of the policy. On the other hand, the choice experiment method overcomes these limitations and allows each benefit to be estimated. Of course, conducting a choice experiment requires prior research on the benefits in question, and in this study, follow-up questions provided a clue for follow-up research. In the future, we will conduct a choice experiment based on the results of this study.

Author Contributions

Conceptualization, Y.-G.K. and S.Y.; methodology, S.Y.; software, Y.-G.K.; validation, S.Y. and D.-H.G.; formal analysis, Y.-G.K.; investigation, Y.-G.K.; resources, S.Y.; data curation, Y.-G.K.; writing—original draft preparation, Y.-G.K.; writing—review and editing, S.Y.; visualization, Y.-G.K.; supervision, S.Y.; project administration, S.Y.; funding acquisition, S.Y. All authors have read and agreed to the published version of the manuscript.

Funding

This research was supported by the Korea Institute of Marine Science & Technology Promotion (KIMST), funded by the Ministry of Oceans and Fisheries, Korea (RS-2022-KS221673); This research has been also supported by the National Research Foundation of Korea (NRF) grant funded by the Korean government (2021S1A5A8064722).

Data Availability Statement

The data presented in this study are available on request from the corresponding author.

Acknowledgments

The authors appreciate the support from Korea Fisheries Resources Agency.

Conflicts of Interest

The authors declare no conflicts of interest.

Appendix A

Figure A1. Trends in changes in the number of vessels and companies in Korea’s distant water fisheries.
Figure A1. Trends in changes in the number of vessels and companies in Korea’s distant water fisheries.
Water 17 00133 g0a1

References

  1. Liddick, D. The dimensions of a transnational crime problem: The case of IUU fishing. Trends Organ. Crime 2014, 17, 290–312. [Google Scholar] [CrossRef]
  2. Elvestad, C.; Kvalvik, I. Implementing the EU-IUU regulation: Enhancing flag state performance through trade measures. Ocean Dev. Int. Law 2015, 46, 241–255. [Google Scholar] [CrossRef]
  3. Gallic, B.L.; Cox, A. An economic analysis of illegal, unreported and unregulated (IUU) fishing: Key drivers and possible solutions. Mar. Policy 2006, 30, 689–695. [Google Scholar] [CrossRef]
  4. Kao, S.-M. International actions against IUU fishing and the adoption of national plans of action. Ocean Dev. Int. Law 2015, 46, 2–16. [Google Scholar] [CrossRef]
  5. Fang, Y.; Asche, F. Can US import regulations reduce IUU fishing and improve production practices in aquaculture? Ecol. Econ. 2021, 187, 107084. [Google Scholar] [CrossRef]
  6. Temple, A.J.; Skerritt, D.J.; Howarth, P.E.C.; Pearce, J.; Mangi, S.C. Illegal, unregulated and unreported fishing impacts: A systematic review of evidence and proposed future agenda. Mar. Policy 2022, 139, 105033. [Google Scholar] [CrossRef]
  7. Andriamahefazafy, M.; Touron-Gardic, G.; March, A.; Hosch, G.; Palomares, M.; Failler, P. Sustainable development goal 14: To what degree have we achieved the 2020 targets for our oceans? Ocean Coast. Manag. 2022, 227, 106273. [Google Scholar] [CrossRef]
  8. Garcia Garcia, S.; Barclay, K.; Nicholls, R. Can anti-illegal, unreported, and unregulated (IUU) fishing trade measures spread internationally? Case study of Australia. Ocean Coast. Manag. 2021, 202, 105494. [Google Scholar] [CrossRef]
  9. Vince, J.; Hardesty, B.D.; Wilcox, C. Progress and challenges in eliminating illegal fishing. Fish Fish. 2021, 22, 518–531. [Google Scholar] [CrossRef]
  10. Gilman, E.; Legorburu, G.; Fedoruk, A.; Heberer, C.; Zimring, M.; Barkai, A. Increasing the functionalities and accuracy of fisheries electronic monitoring systems. Aquat. Conserv. Mar. Freshw. Ecosyst. 2019, 29, 901–926. [Google Scholar] [CrossRef]
  11. Korea Fisheries Resources Agency. Enhancement Strategies for Systematic Management of International Observers; Korea Fisheries Resources Agency: Busan, Republic of Korea, 2022. [Google Scholar]
  12. Lee, S.I.; Kim, Z.G. Study on the status and improvement of national observer programs for Korean distant water fisheries. J. Korean Soc. Fish. Ocean Technol. 2024, 60, 47–56. [Google Scholar] [CrossRef]
  13. Kim, Z.G.; Kwon, Y.; Lee, H.; Kim, D.N.; Lee, J. A study on improving the IUU Fishing Index of Korea’s distant water fisheries. J. Korean Soc. Fish. Ocean Technol. 2023, 59, 362–376. [Google Scholar] [CrossRef]
  14. Kim, H.J. Inducing state compliance with international fisheries law: Lessons from two case studies concerning the Republic of Korea’s IUU fishing. Int. Environ. Agreem. Politics Law Econ. 2019, 19, 631–645. [Google Scholar] [CrossRef]
  15. Constantino, M.M.; Cubas, A.L.V.; Silvy, G.; Magogada, F.; Moecke, E.H.S. Impacts of illegal fishing in the inland waters of the State of Santa Catarina–Brazil. Mar. Pollut. Bull. 2022, 180, 113746. [Google Scholar] [CrossRef]
  16. Hanley, N.; Mourato, S.; Wright, R.E. Choice Modelling Approaches: A Superior Alternative for Environmental Valuatioin? J. Econ. Surv. 2001, 15, 435–462. [Google Scholar] [CrossRef]
  17. Johnston, R.J.; Boyle, K.J.; Adamowicz, W.; Bennett, J.; Brouwer, R.; Cameron, T.A.; Hanemann, W.M.; Hanley, N.; Ryan, M.; Scarpa, R.; et al. Contemporary Guidance for Stated Preference Studies. J. Assoc. Environ. Resour. Econ. 2017, 4, 319–405. [Google Scholar] [CrossRef]
  18. Hanemann, M.; Loomis, J.; Kanninen, B. Statistical efficiency of double-bounded dichotomous choice contingent valuation. Am. J. Agric. Econ. 1991, 73, 1255–1263. [Google Scholar] [CrossRef]
  19. StataCorp. Stata Statistical Software, Release 18; StataCorp LLC: College Station, TX, USA, 2023. [Google Scholar]
  20. Lopez-Feldman, A. Introduction to Contingent Valuation Using Stata (MPRA Paper No. 41018); Centro de Investigacion y Docencia Economicas (CIDE): Toluca, Mexico, 2012. [Google Scholar]
  21. Deaton, A.; Muellbauer, J. Economics and Consumer Behavior; Cambridge University Press: Cambridge, UK, 1980. [Google Scholar]
  22. Mankiw, N.G. Principles of Economics; Harcourt College Publishers: San Diego, CA, USA, 2001. [Google Scholar]
  23. Statistics Korea. Future Household Estimates; Statistics Korea: Daejeon, Republic of Korea, 2022. [Google Scholar]
  24. Kang, S.-K.; Ryu, J.-G.; Sim, S.-H.; Oh, T.-G.; Lim, B.-G. Economic Valuation of the Off-Shore Fisheries Stock Enhancement Project. J. Fish. Bus. Adm. 2021, 52, 1–31. [Google Scholar] [CrossRef]
  25. Kim, S.-M.; So, A.-R.; Shin, S.-S. A Study on the Non-market Economic Value of Marine ranches and Marine Forests Using Contingent Valuation Method. J. Fish. Bus. Adm. 2020, 51, 1–15. [Google Scholar] [CrossRef]
  26. Choi, K.-R.; Kim, J.-H.; Yoo, S.-H. Public perspective on constructing sea forests as a public good: A contingent valuation experiment in South Korea. Mar. Policy 2020, 120, 104146. [Google Scholar] [CrossRef]
  27. Malinauskaite, L.; Cook, D.; Davíðsdóttir, B.; Ögmundardóttir, H.; Roman, J. Willingness to pay for expansion of the whale sanctuary in Faxaflói Bay, Iceland: A contingent valuation study. Ocean Coast. Manag. 2020, 183, 105026. [Google Scholar] [CrossRef]
  28. Truong, D.D. Estimating Residents’ Willingness to Pay for Wetland Conservation Using Contingent Valuation: The Case of Van Long Ramsar Protected Area, Vietnam. Biodiversitas J. Biol. Divers. 2021, 22, 4784. [Google Scholar] [CrossRef]
  29. Mandell, S.; Wilhelmsson, M. Willingness to Pay for Sustainable Housing. J. Hous. Res. 2011, 20, 35–51. [Google Scholar] [CrossRef]
Figure 1. (a) Key tasks performed by international fishery observers. (b) Video explaining the effects of the international fishery observer program.
Figure 1. (a) Key tasks performed by international fishery observers. (b) Video explaining the effects of the international fishery observer program.
Water 17 00133 g001
Table 1. The analytical procedure of the CVM approach.
Table 1. The analytical procedure of the CVM approach.
StageDescription
1Defining the target for valuation using CVM analysisThe first stage of the study is to define the target for value estimation. This study focuses on estimating the socio-economic value generated by the Korean fishery observer program.
2Identifying and communicating the economic and social value provided by the Korean fishery observer programThe second stage involves identifying the social and economic value provided by the fishery observer program in distant water fisheries and creating explanatory materials to convey this information to survey respondents. In this study, video explanatory materials were developed to effectively communicate these values and improve respondents’ understanding.
3Determining the payment vehicle and developing survey questions to measure maximum willingness to payThe third stage is to determine the payment vehicle that will be used to measure the maximum willingness to pay and to develop survey questions accordingly. This study identified additional household income tax as the payment vehicle, and the initial bid range was determined based on previous research.
4Validating the survey through a pilot surveyThe final stage involves conducting a pilot survey to validate the effectiveness of the survey.
Table 2. Textual content of video footage.
Table 2. Textual content of video footage.
Transcripts
Do you know about IUU fishing, which hinders sustainable fisheries? IUU stands for illegal, unreported, and unregulated. If a country is designated as an IUU fishing country by the international community, it may be banned from exporting marine products and restricted from entering major foreign ports on its vessels. It will also be subject to international condemnation. Efforts are being made to eradicate IUU fishing and to strengthen the transparency and traceability of fisheries, and a representative example is the international fishery observer programs.

The Republic of Korea is implementing international fishery observer programs that send observers aboard the national flagged vessels of deep-sea fishing vessels operating in various waters, including the Pacific, Atlantic, and Antarctic oceans, to collect data on fishing statistics, conduct fact-finding surveys, conduct biological surveys, and investigate whether regulatory and conservation measures are being implemented. Observers with public interest purposes board fishing vessels to induce legal fishing and perform various roles, such as collecting scientific data through research activities.

One of the main roles of the observer is to report on fishing activities. Recently, consumers worldwide have shown a growing interest in ethical consumption. In the case of marine products, the fishing process is carefully evaluated, including protecting marine ecosystems and fish species and compliance with international regulations, and sustainable marine products are certified to encourage valuable consumption. Consumers pay extra for products with the trust of the certification system, and companies invest the additional profits in sustainable fisheries, creating a virtuous cycle in the industry. The basis for such certification requires presenting evidence through an observer program.

However, financial resources for program operation are necessary to prevent illegal fishing, ensure marine ecosystem diversity, and ensure sustainable fishing grounds through the smooth operation of the observer program. How much would you be willing to pay if you participated as a citizen in securing the financial resources necessary to maintain sustainable distant water fisheries through fishery observer programs? To raise these funds, we need to increase the total income tax paid by your household by an additional amount each year for the next five years.

Would your household be willing to pay an additional [randomly selected initial amount] KRW annually in total household income tax for the next five years to support the operation of the international observer program?
(1) Yes   (2) No
Note: The video footage was accompanied by narration based on the transcripts above.
Table 3. Descriptive statistics of the samples.
Table 3. Descriptive statistics of the samples.
Variables *DefinitionsMeanStandard Deviation
GenderGender of the survey participants (male = 1, female = 0)0.510 0.50
AgeAge42.91012.45
Marital StatusMarital status (married = 1, single = 0)0.597 0.49
Family SizeThe number of family members2.9611.19
Household IncomeGross monthly household income (KRW)5,072,5002,414,917
Note: * Socio-economic variables; KRW 5,072,500 is USD 3901. The currency conversion rate is USD 1, equaling KRW 1300.
Table 4. Frequency distribution of WTP.
Table 4. Frequency distribution of WTP.
Initial Bid Amount
(KRW)
First Answer: YesFirst Answer: No
Second Answer Second Answer
YesNo YesNo
1000 (USD 0.77)87626.2%252.5%3850.5%333.3%
3000 (USD 2.31)77505.0%272.7%4890.9%393.9%
5000 (USD 3.85)64363.6%282.8%61121.2%494.9%
7000 (USD 5.38)62363.6%262.6%63161.6%474.7%
9000 (USD 6.92)57272.7%303.0%68151.5%535.3%
12,000 (USD 9.23)55272.7%282.8%70191.9%515.1%
15,000 (USD 11.54)57222.2%353.5%68171.7%515.1%
20,000 (USD 15.38)55171.7%383.8%70161.6%545.4%
Total51427727.7%23723.7%48610910.9%37737.7%
Table 5. Estimated parameters of the double-bounded choice model.
Table 5. Estimated parameters of the double-bounded choice model.
VariablesCoefficientStandard Errorzp-Value95% Conf. Interval
Household income0.00040.00031.280.201−0.00020.0009
Age 173.649665.93442.630.00844.4205302.8786
Gender441.99791697.14200.260.795−2884.33903768.3350
Household size−1231.6850566.9954−2.170.030−2342.9750−120.3941
Online purchasing949.5505391.32252.430.015182.57241716.5290
Online seafood info1243.2790405.83383.060.002447.85972038.6990
Freq. of seafood consumption460.8786166.65692.770.006134.2371787.5202
Constant−6115.49205845.3940−1.050.295−17,572.25005341.2700
Note: Log likelihood = −1341.4427, Wald chi-square (7) = 49.37, p-value > Wald chi-square = 0.0000, z = z-score.
Table 6. Willingness to pay for supporting the international fishery observer program.
Table 6. Willingness to pay for supporting the international fishery observer program.
CoefficientStandard Errorzp-Value95% Conf. Interval
Annual willingness to pay to support the international fishery observer programUSD 9.453.013.140.0023.5515.36
Note: The unit was converted from KRW to USD; USD 1 = KRW 1300, KRW 12,289 = USD 9.45.
Table 7. Annual public benefit of the international fishery observer program.
Table 7. Annual public benefit of the international fishery observer program.
Item
Weighted annual household WTPUSD 7.01
Annual public benefitsUSD 153,097,825
Note: The estimate is based on the proportion of respondents who expressed agreement while also accounting for the 25.8% proportion of protest respondents among the total survey respondents using the 2023 population estimate.
Table 8. Reasons for supporting international fishery observer programs.
Table 8. Reasons for supporting international fishery observer programs.
ReasonsFreq.%
1. To prevent illegal fishing23231.3%
2. To enhance national prestige243.2%
3. To contribute to scientific data collection on marine resources182.4%
4. To consume eco-friendly seafood11815.9%
5. To preserve and protect marine ecosystems16622.4%
6. To protect endangered species (whales, sharks, turtles, seabirds, etc.)496.6%
7. To prevent pollution of the marine environment608.1%
8. To facilitate the Korean fishery industry’s access to overseas fishing grounds101.4%
9. To ensure the acquisition of distant water seafood products70.9%
10. For sustainable fisheries496.6%
11. To protect fisheries resources on the high seas81.1%
12. Other10.1%
Total742100%
Note: The question was, “what was the most important factor you considered when expressing your willingness to pay additional income tax for supporting the international observer program?”.
Table 9. Reasons for not supporting international fishery observer programs.
Table 9. Reasons for not supporting international fishery observer programs.
ReasonsFreq.%
1. I can’t afford to pay extra.6525.2%
2. Fishery observer programs are not relevant to me.238.9%
3. Distant water fisheries are not of value to me.20.8%
4. I am not interested in sustainable fishing.103.9%
5. I don’t trust the effectiveness of fishery observer programs.2810.9%
6. I don’t think fishery observer programs will work well.155.8%
7. Fishery observer programs are unnecessary for sustainable fisheries.51.9%
8. I pay enough taxes already.9135.3%
9. The additional taxes will not be used for the stated purpose.187.0%
10. Alternative means of monitoring other than fishery observer programs are needed.10.4%
Total258100%
Note: The question was, “what is the most important reason for your unwillingness to pay?”.
Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

Share and Cite

MDPI and ACS Style

Kim, Y.-G.; Go, D.-H.; Yi, S. Data-Based Analysis on the Economic Value of Fishery Observer Programs in International Fisheries Management: Insights from Korea’s Distant Water Fisheries. Water 2025, 17, 133. https://doi.org/10.3390/w17010133

AMA Style

Kim Y-G, Go D-H, Yi S. Data-Based Analysis on the Economic Value of Fishery Observer Programs in International Fisheries Management: Insights from Korea’s Distant Water Fisheries. Water. 2025; 17(1):133. https://doi.org/10.3390/w17010133

Chicago/Turabian Style

Kim, Yeon-Gyeong, Dong-Hun Go, and Sangchoul Yi. 2025. "Data-Based Analysis on the Economic Value of Fishery Observer Programs in International Fisheries Management: Insights from Korea’s Distant Water Fisheries" Water 17, no. 1: 133. https://doi.org/10.3390/w17010133

APA Style

Kim, Y.-G., Go, D.-H., & Yi, S. (2025). Data-Based Analysis on the Economic Value of Fishery Observer Programs in International Fisheries Management: Insights from Korea’s Distant Water Fisheries. Water, 17(1), 133. https://doi.org/10.3390/w17010133

Note that from the first issue of 2016, this journal uses article numbers instead of page numbers. See further details here.

Article Metrics

Back to TopTop