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Keywords = contingent valuation (CV)

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18 pages, 832 KiB  
Article
Monetizing Co-Benefits of Nature-Based Sanitation-Constructed Wetlands Using Contingent Valuation Method—Jordan as a Case Study
by Ahmed M. N. Masoud, Amani Alfarra and Sabrina Sorlini
Water 2024, 16(24), 3612; https://doi.org/10.3390/w16243612 - 15 Dec 2024
Viewed by 1103
Abstract
Parallel to the growing evidence about the efficiency of Nature-based Solutions (NbS) in sanitation, there is a growing need to highlight the co-benefits of these solutions compared to conventional alternatives. This study focuses on economically valuing these co-benefits, with constructed wetlands (CWs) examined [...] Read more.
Parallel to the growing evidence about the efficiency of Nature-based Solutions (NbS) in sanitation, there is a growing need to highlight the co-benefits of these solutions compared to conventional alternatives. This study focuses on economically valuing these co-benefits, with constructed wetlands (CWs) examined as a sanitation solution. The contingent valuation (CV) method has been utilized for this purpose, measuring people’s willingness to pay (WTP) and willingness to accept (WTA) CWs as a sanitation solution. Jordan has been selected as a case study due to the country’s preference for sustainable, cost-efficient solutions. By utilizing extended questionnaires at the stakeholder and community levels, this research aims to identify gaps between these groups’ perspectives on CWs. Additionally, this study investigates the main factors affecting communities’ WTP and WTA. The collected data were analyzed using descriptive statistics for the responses, followed by the CV method, and regression analysis to understand the main factors affecting WTP and WTA. The results are intended to guide decision-makers in developing programs that align with community preferences and address gaps in the acceptance of NbS-CWs. The main results found that while stakeholders have concerns about people’s WTA CWs, the community survey revealed that people prefer CWs over conventional solutions. The findings revealed that 78.9% of respondents were willing to accept (WTA) CWs to treat wastewater in their town, but only 33% WTA having CW near their households. Meanwhile, 53.2% were willing to pay (WTP) for CWs in general, while 80.7% are willing to accept (WTP) using CWs to treat greywater at the household level and 56.9% of the respondents are WTP for that. Full article
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18 pages, 311 KiB  
Article
Assessment of the Environmental Public Goods of the Organic Farming System: A Lithuanian Case Study
by Anastasija Novikova, Renata Zemaitiene, Renata Marks-Bielska and Stanisław Bielski
Agriculture 2024, 14(3), 362; https://doi.org/10.3390/agriculture14030362 - 23 Feb 2024
Cited by 6 | Viewed by 2273
Abstract
Organic farming is a farming system that combines environmental farming practices, a high degree of biodiversity, and the protection of natural resources. All these environmental services are used in society as public goods, contributing to societal welfare. Understanding the opinions of residents on [...] Read more.
Organic farming is a farming system that combines environmental farming practices, a high degree of biodiversity, and the protection of natural resources. All these environmental services are used in society as public goods, contributing to societal welfare. Understanding the opinions of residents on these environmental public goods is essential because they are both consumers and financial contributors to the common agricultural policy. Therefore, it is imperative to further existing scientific knowledge in the field of consumer behaviour. Using Lithuania as a case study, the present study focuses on analysing societal opinion and willingness to pay (WTP) with respect to the environmental public goods (reflected in three components: the reduction in water, soil, and air pollution) of organic farming. This study uses the contingent valuation (CV) method to obtain the WTP for public goods. The median WTP was calculated for multiple environmental public goods from organic agriculture, excluding the protest zero. This study revealed that the residents of Lithuania understood the contribution of organic farming in creating environmental public goods and were concerned about environmental issues. It was crucial for them to have a clean environment with, for example, better drinking water quality, lower air pollution and soil erosion. The application of the CV method showed a median WTP of EUR 24.58 annually per family for environmental public goods. The preference towards environmental public goods differs depending on the socioeconomic characteristics and knowledge about organic farming. These findings provide quantitative information regarding the demand for the environmental effects of organic farming, which could be useful for policy-makers. Such research could also prove useful in setting the future direction of the common agricultural policy. The example of Lithuania was used to present a universal research problem that concerns European countries, especially those in the European Union. Full article
12 pages, 336 KiB  
Article
Prospects and Aspirations for Workforce Training and Education in Social Prescribing
by Abraham Makanjuola, Mary Lynch, Llinos Haf Spencer and Rhiannon Tudor Edwards
Int. J. Environ. Res. Public Health 2023, 20(16), 6549; https://doi.org/10.3390/ijerph20166549 - 9 Aug 2023
Viewed by 2117
Abstract
Background: A social prescribing (SP) link worker (LW) is responsible for enabling and supporting individuals, by assessing their personal goals and co-producing solutions to make use of appropriate local non-clinical resources or interventions. As an emerging new role, LWs are not regulated by [...] Read more.
Background: A social prescribing (SP) link worker (LW) is responsible for enabling and supporting individuals, by assessing their personal goals and co-producing solutions to make use of appropriate local non-clinical resources or interventions. As an emerging new role, LWs are not regulated by professional bodies associated with SP. Therefore, currently there is no standardised training for LWs who are from varied backgrounds. As such, LWs have varying knowledge about how to deal with individuals with complex needs, which can impact on their decision-making capabilities to seek solutions and navigate complex systems. The purpose of the research was to explore LWs’ level of education, past and current training requirements as well as elicit how much LWs were willing to pay (WTP) to access and undertake training to improve their skill set. Methods: A rigorous mixed method research design was employed which included semi-structured interviews with key stakeholders and quantitative questionnaires including contingent valuation (CV) questions to a population of LWs across Wales from March to June 2020. Qualitative interviews with key stakeholders who commission and deliver social prescribing interventions employing LWs identified perceived link worker qualities and requirements for LW roles. Purposive sampling was used to identify and select individuals that have experience in managing LWs. Due to the COVID-19 pandemic, interviews were carried out exclusively online. LWs self-selected to complete the online questionnaires. Questionnaires gathered data on LW qualifications and demographic information with the CV questions gathering data on the value LW placed on accessing training in SP. Thematic narrative analysis was applied to interpret the data from the semi-structured interviews. Descriptive frequency analysis was conducted on the quantitative data generated from the online questionnaire. Findings: SP coordinators (n = 6) reported that ‘personal skills’ are the most essential skills required by LWs in SP intervention. Training is available for LWs; however, the training undertaken varies depending on the type of intervention delivered, with 70% of LWs previously undertaking training to facilitate their development as an LW. The results from the contingent valuation questionnaire (n = 54) indicated that 100% of the respondents would avail of training. LWs were asked how much they were willing to pay as a single payment for professional training; on average, LWs were WTP GBP 58 from their personal funds to access training and the associated benefits to enhance their skills and knowledge. Interpretation: The semi-structured interviews conducted with the key SP stakeholders yielded rich information and novel insight into LW training. External funding for the salary of the LW is an obstacle for LW development through training. In addition, the questionnaire results regarding stated preference techniques demonstrate that LWs place value on their professional development and would be willing to spend their own money on training to improve their knowledge and skills. Full article
13 pages, 716 KiB  
Article
Households’ Willingness to Pay for Interactive Charging Stations for Vehicle to Grid System in South Korea
by Ju-Hee Kim, Min-Ki Hyun and Seung-Hoon Yoo
Sustainability 2023, 15(15), 11563; https://doi.org/10.3390/su151511563 - 26 Jul 2023
Cited by 3 | Viewed by 3500
Abstract
The South Korean government intends to construct interactive charging stations (ICSs) for a vehicle to grid (V2G) system that uses electric vehicles as a type of energy storage system. This article employs contingent valuation (CV) to examine households’ willingness to pay (WTP) to [...] Read more.
The South Korean government intends to construct interactive charging stations (ICSs) for a vehicle to grid (V2G) system that uses electric vehicles as a type of energy storage system. This article employs contingent valuation (CV) to examine households’ willingness to pay (WTP) to construct the ICSs. To this end, a CV survey of 1000 people was performed using the one-and-one-half-bound dichotomous choice questioning as the elicitation method for the WTP. To check if the response effect incurred by the questioning exists, a single-bound model, which partly uses the responses from the questioning, was also applied. Furthermore, a spike model which can model WTP observations with lots of zeros was adopted. The single-bound spike model, finally chosen for further analysis, produced some results securing statistical significance. The average household WTP is estimated as KRW 4017 (USD 3.51) per annum. A national version of the yearly WTP is derived as KRW 85.48 billion (USD 74.65 million). Considering that the occurrence period of the annual WTP is 10 years, the total present value as of the end of 2022 is computed as KRW 676.4 billion (USD 590.7 million). This study has significance in two aspects. First, quantitative information on household WTP is explicitly provided. Second, to the best of the authors’ knowledge, the household WTP is empirically dealt with for the first time in the literature. In addition, the implications of this value from a policy perspective, as well as four challenges to be solved for constructing ICSs for a V2G system, are discussed. Full article
(This article belongs to the Special Issue Development Trends of Sustainable Mobility)
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17 pages, 1408 KiB  
Article
Valuing Nonuse Value of a National Forest Park with Consideration of the Local Residents’ Environmental Attitudes
by Yang Yu, Erda Wang and Ziang Wang
Forests 2023, 14(7), 1487; https://doi.org/10.3390/f14071487 - 20 Jul 2023
Cited by 5 | Viewed by 2032
Abstract
Valuing the nonuse value of a national forest park (NFP) is critically important to obtain a better understanding of its total economic value, beyond focusing solely on the recreation value. This paper estimates the nonuse value of an NFP based on the relationship [...] Read more.
Valuing the nonuse value of a national forest park (NFP) is critically important to obtain a better understanding of its total economic value, beyond focusing solely on the recreation value. This paper estimates the nonuse value of an NFP based on the relationship between the local public’s environmental attitudes and their willingness to pay (WTP). The data collected on the local residents’ environmental attitudes relied on the New Ecological Paradigm (NEP). Residents’ willingness to pay (WTP) for the national forest parkland protection was collected using the contingent valuation method (CVM). The nonuse value WTP was estimated using a bivariate dichotomous choice model. This model analyzed the relationship between the environmental attitude scores and WTP in order to estimate the nonuse value of the NFP of our case study site, Dalian Xijiao National Forest Park (DXNFP) in northeastern China. The results showed that DXNFP provides 20.26 CNY (3.02 USD) in nonuse value per household per year in Dalian city, which can then be translated into 140 CNY (21 USD) million annually in total. Full article
(This article belongs to the Section Urban Forestry)
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22 pages, 869 KiB  
Article
Temporal Stability of Attitudes towards Climate Change and Willingness to Pay for the Emissions Reduction Options in Queensland, Australia
by Galina Williams
Energies 2023, 16(9), 3879; https://doi.org/10.3390/en16093879 - 3 May 2023
Cited by 2 | Viewed by 2238
Abstract
Citizens’ attitudes towards and their perceptions of climate change are widely believed to influence citizens’ actions related to climate change. Knowledge of these attitudes and willingness to pay (WTP) for environmental improvement can be useful in designing an environmental policy. Although citizens’ attitudes [...] Read more.
Citizens’ attitudes towards and their perceptions of climate change are widely believed to influence citizens’ actions related to climate change. Knowledge of these attitudes and willingness to pay (WTP) for environmental improvement can be useful in designing an environmental policy. Although citizens’ attitudes and perceptions are likely to affect their WTP, they are rarely included in the non-market valuation. Furthermore, over time, attitudes and perceptions of environmental issues are likely to change. An understanding of temporal stability of attitudes towards climate change could shed the light on changes in citizens’ WTP for environmental quality over time. This study examined changes in perceptions, attitudes, and actions towards climate change using two surveys in Queensland, Australia. The surveys were administered 10 years apart (2009 and 2018). The effect of attitudes over time on WTP was analysed using a contingent valuation (CV) method. The results confirmed that attitudes and perceptions of climate change were important factors affecting actions of respondents. Furthermore, over time, some attitudes and perceptions changed significantly. However, only some attitudes and perceptions were significant predictors of consumers’ WTP for a change in environmental quality. Full article
(This article belongs to the Topic Energy Economics and Sustainable Development)
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14 pages, 982 KiB  
Article
Willingness to Pay for Renewably-Sourced Home Heating in the Fairbanks North Star Borough
by Georgia K. Roberts, Dominique J. Pride, Joseph M. Little and Julie M. Mueller
Energies 2023, 16(8), 3413; https://doi.org/10.3390/en16083413 - 13 Apr 2023
Cited by 2 | Viewed by 2324
Abstract
Space heating is a necessity in Alaska; however, the use of heating fuels carries both economic and environmental costs. In the Fairbanks North Star Borough (FNSB), Alaska, most households utilize heating fuel oil as a primary source for home heating and firewood as [...] Read more.
Space heating is a necessity in Alaska; however, the use of heating fuels carries both economic and environmental costs. In the Fairbanks North Star Borough (FNSB), Alaska, most households utilize heating fuel oil as a primary source for home heating and firewood as a secondary source. In the FNSB, wood-burning devices are the principal source of fine particulate matter with a size of 2.5 microns or less, (PM2.5), but firewood is less expensive when compared to heating fuel oil. The FNSB has been designated as a nonattainment area for PM2.5, which has been linked to negative cardiopulmonary impacts and other adverse health consequences. Electric thermal storage heaters (ETSH) could help solve the PM2.5 problem by displacing firewood used for residential space heating. We use dichotomous choice contingent valuation (DC-CV) to estimate willingness to pay (WTP) for an ETSH program which would allow FNSB residents to offset 100 gallons of heating fuel oil annually. Certainty correction is used to control for the presence of hypothetical bias. We find median WTP is USD 33.98 without certainty correction and USD 9.75 with certainty correction. Our results indicate that implementation of a special ETSH electricity rate based on the WTP estimate may lead to broader adoption of ETSH for space heating, which could improve air quality, reduce fuel poverty, and reduce the carbon footprint of residential space heating. Full article
(This article belongs to the Special Issue Willingness to Pay Studies and Energy Use)
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17 pages, 276 KiB  
Article
Embedding Effects in Contingent Valuation Applications to Cultural Capital: Does the Nature of the Goods Matter?
by Patrizia Riganti
Sustainability 2022, 14(9), 5685; https://doi.org/10.3390/su14095685 - 8 May 2022
Cited by 4 | Viewed by 2911
Abstract
The paper’s argument is that the specific characteristics of cultural heritage goods help minimise insensitivity to the scope, also known as the embedding effect, of contingent valuation (CV) estimates. This bias happens when estimates of willingness to pay (WTP) do not increase with [...] Read more.
The paper’s argument is that the specific characteristics of cultural heritage goods help minimise insensitivity to the scope, also known as the embedding effect, of contingent valuation (CV) estimates. This bias happens when estimates of willingness to pay (WTP) do not increase with the quantity of the goods presented, as expected from economic theory. The presence of such effect has been actively debated in the literature since it raises major concerns about the validity of the method itself and its uses within a social cost benefit analysis framework. The research presented in this paper discusses one of the few methodological studies testing the embedding effect within and across samples for cultural heritage goods. The research uses empirical data gathered from three independent and comparable samples focusing on the archaeological park of Campi Flegrei in Italy and two of its components: the Castle of Baia and the archaeological park of Cuma. Findings successfully prove that CV estimates relate to the quantity being valued and could be used with confidence by policy makers concerned with an inclusive, sustainable approach to cultural capital management. Full article
(This article belongs to the Special Issue Valuing Cultural Capital in the Smart Cities Era)
20 pages, 568 KiB  
Article
Valuing Intangible Cultural Heritage in Developing Countries
by Godwin Kofi Vondolia, Albert Mensah Kusi, Sylvana Rudith King and Ståle Navrud
Sustainability 2022, 14(8), 4484; https://doi.org/10.3390/su14084484 - 9 Apr 2022
Cited by 9 | Viewed by 4493
Abstract
The disappearance of intangible cultural heritages (ICHs) together with associated symbols and meanings in sub-Saharan Africa (SSA) undermines 2003 UN Convention for Safeguarding of the Intangible Cultural Heritage. To contribute to reversing this trend, the present study estimates the economic value of preserving [...] Read more.
The disappearance of intangible cultural heritages (ICHs) together with associated symbols and meanings in sub-Saharan Africa (SSA) undermines 2003 UN Convention for Safeguarding of the Intangible Cultural Heritage. To contribute to reversing this trend, the present study estimates the economic value of preserving traditional kente weaving and interpretation of kente symbols by establishing national demonstration centers in Ghana. Contingent valuation (CV) surveys of both the public and kente weavers are used to elicit their preferences for these national centers. As CV surveys of cultural heritage have often been criticized for lacking both policy and payment consequentiality, we have used a specific preservation measure and a non-voluntary payment vehicle to make the decision context realistic and consequential. Households show significant, positive mean willingness-to-pay (WTP) for establishing national centers to preserve both the kente weaving technique and the interpretation of kente symbols. Furthermore, we find no distance decay in WTP for preservation of this ICH; indicating that people have strong preferences for preserving this ICH independent of how far they live from the center of kente weaving activities. This leads to larger aggregated benefits of preservation compared to built cultural heritage and local environmental goods, for example, where strong distance decay occurs in many cases. This makes the net present value of centers for demonstration of kente weaving and interpretation of kente symbols positive and an economically worthwhile investment. The policy implication of these results is that higher investments in preserving ICHs can be justified not only from a cultural heritage perspective, but also from an economic point of view. Full article
(This article belongs to the Special Issue Valuing Cultural Capital in the Smart Cities Era)
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18 pages, 319 KiB  
Article
Determinants of Demand Response Program Participation: Contingent Valuation Evidence from a Smart Thermostat Program
by Jesse Kaczmarski, Benjamin Jones and Janie Chermak
Energies 2022, 15(2), 590; https://doi.org/10.3390/en15020590 - 14 Jan 2022
Cited by 8 | Viewed by 3309
Abstract
As renewable electricity generation continues to increase in the United States (US), considerable effort goes into matching heterogeneous supply to demand at a subhour time-step. As a result, some electric providers offer incentive-based programs for residential consumers that aim to reduce electric demand [...] Read more.
As renewable electricity generation continues to increase in the United States (US), considerable effort goes into matching heterogeneous supply to demand at a subhour time-step. As a result, some electric providers offer incentive-based programs for residential consumers that aim to reduce electric demand during high-demand periods. There is little research into determinants of consumer response to incentive-based programs beyond typical sociodemographic characteristics. To add to this body of literature, this paper presents the findings of a dichotomous choice contingent valuation (CV) survey targeting US ratepayers’ participation in a direct-load-control scheme utilizing a smart thermostat designed to reallocate consumer electricity demand on summer days when grid stress is high. Our results show approximately 50% of respondents are willing to participate at a median willingness-to-accept (WTA) figure of USD 9.50 (95% CI: 3.74, 15.25) per month that lasts for one summer (June through August)—or slightly less than USD 30 per annum. Participation is significantly affected by a respondent’s attitudes and preferences surrounding various environmental and institutional perspectives, but not by sociodemographic characteristics. These findings suggest utilities designing direct-load-control programs may improve participation by designing incentives specific to customers’ attitudes and preferences. Full article
(This article belongs to the Topic Electricity Demand-Side Management)
28 pages, 1111 KiB  
Article
Willingness to Pay to Improve Quality of Public Healthcare Services in Mauritius
by Jamiil Jeetoo and Vishal Chandr Jaunky
Healthcare 2022, 10(1), 43; https://doi.org/10.3390/healthcare10010043 - 27 Dec 2021
Cited by 9 | Viewed by 7726
Abstract
Mauritius has a universal free healthcare system, based on the Beveridge model which is financed by taxpayers. There are growing considerations over improving quality of healthcare services. The purpose of the study is to employ a contingency valuation (CV) to investigate the willingness [...] Read more.
Mauritius has a universal free healthcare system, based on the Beveridge model which is financed by taxpayers. There are growing considerations over improving quality of healthcare services. The purpose of the study is to employ a contingency valuation (CV) to investigate the willingness of Mauritians people to pay to improve the quality of public healthcare services and the associated determinants using the double-bounded dichotomous choice model. A drop off survey with a sample size of 974 respondents from the working population is used. The empirical analysis shows that the majority of the sample was willing to pay for improving quality of public healthcare services. Other than the conventional determinants of respondents’ demographic and socioeconomic characteristics, the findings support the assertion that psycho-social constructs such as the Theory of Planned Behaviour, Norm-Activation, Public Good Theory, and Perceived Response Efficacy are found to significantly affect Willingness-to-Pay (WTP). The results of this study might be of use to policymakers to help with both priority setting and fund allocation. Full article
(This article belongs to the Collection Health Economics & Finance and Global Public Health)
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11 pages, 350 KiB  
Article
Prevalence of Missing Values and Protest Zeros in Contingent Valuation in Dental Medicine
by Pedram Sendi, Arta Ramadani and Michael M. Bornstein
Int. J. Environ. Res. Public Health 2021, 18(14), 7219; https://doi.org/10.3390/ijerph18147219 - 6 Jul 2021
Cited by 4 | Viewed by 2284
Abstract
Background: The number of contingent valuation (CV) studies in dental medicine using willingness-to-pay (WTP) methodology has substantially increased in recent years. Missing values due to absent information (i.e., missingness) or false information (i.e., protest zeros) are a common problem in WTP studies. The [...] Read more.
Background: The number of contingent valuation (CV) studies in dental medicine using willingness-to-pay (WTP) methodology has substantially increased in recent years. Missing values due to absent information (i.e., missingness) or false information (i.e., protest zeros) are a common problem in WTP studies. The objective of this study is to evaluate the prevalence of missing values in CV studies in dental medicine, to assess how these have been dealt with, and to suggest recommendations for future research. Methods: We systematically searched electronic databases (MEDLINE, Web of Science, Cochrane Library, PROSPERO) on 8 June 2021, and hand-searched references of selected reviews. CV studies in clinical dentistry using WTP for valuing a good or service were included. Results: We included 49 WTP studies in our review. Out of these, 19 (38.8%) reported missing values due to absent information, and 28 (57.1%) reported zero values (i.e., WTP valued at zero). Zero values were further classified into true zeros (i.e., representing the underlying preference of the respondent) or protest zeros (i.e., false information as a protest behavior) in only 9 studies. Most studies used a complete case analysis to address missingness while only one study used multiple imputation. Conclusions: There is uncertainty in the dental literature on how to address missing values and zero values in CV studies. Zero values need to be classified as true zeros versus protest zeros with follow-up questions after the WTP elicitation procedure, and then need to be handled differently. Advanced statistical methods are available to address both missing values due to missingness and due to protest zeros but these are currently underused in dental medicine. Failing to appropriately address missing values in CV studies may lead to biased WTP estimates of dental interventions. Full article
(This article belongs to the Section Oral Health)
13 pages, 945 KiB  
Article
Does Paying for Aquatic Resources Matter? A Case of an African Riverine Ecosystem
by Gladys Chigamba, Moses Limuwa and Emmanuel Kaunda
Sustainability 2021, 13(8), 4177; https://doi.org/10.3390/su13084177 - 9 Apr 2021
Cited by 6 | Viewed by 2251
Abstract
Valuation of environmental goods and services has an important role to play in the protection and conservation of riverine resources. However, the literature shows a dearth of information regarding factors that influence people’s willingness to pay (WTP) for riverine resources. This research study [...] Read more.
Valuation of environmental goods and services has an important role to play in the protection and conservation of riverine resources. However, the literature shows a dearth of information regarding factors that influence people’s willingness to pay (WTP) for riverine resources. This research study was undertaken to find out key factors that affect the willingness of people to pay for the conservation of aquatic resources in the lower section of the Linthipe River in Malawi. Data was collected through household interviews, focus group discussions, key informant interviews, and contingent valuation (CV) surveys. The study noted that communities were willing to offer $3.51 per year for the conservation of aquatic resources in the river. This study established that the people’s WTP is a function of education level, household usage of the goods and services, community support in the management of the resources, household income, and distance of the household from the river ecosystem. The study further discovered that the pay-out level of the users along the Linthipe River was driven by household usage of resources from the river, period of stay in the area, and level of household income. Our recommendation is that government and development partners should popularize the important role played by rivers and streams to surrounding communities and beyond to appeal for more support from users. The authorities must further empower the communities along the rivers and streams to sustainably manage the aquatic resources for the continued appreciation of aquatic resources by future generations. Full article
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14 pages, 262 KiB  
Article
Economic Valuation of Reducing Submerged Marine Debris in South Korea
by Se-Jun Jin, Young-Ju Kwon and Seung-Hoon Yoo
Appl. Sci. 2020, 10(17), 6086; https://doi.org/10.3390/app10176086 - 2 Sep 2020
Cited by 10 | Viewed by 2924
Abstract
Submerged marine debris (SMD) scattered between sea level and the bottom of the sea damages the habitats of marine life and threatens its growth in South Korea. The collection of SMD is more difficult and expensive than that of coastal and floating debris. [...] Read more.
Submerged marine debris (SMD) scattered between sea level and the bottom of the sea damages the habitats of marine life and threatens its growth in South Korea. The collection of SMD is more difficult and expensive than that of coastal and floating debris. The government is trying to achieve a 33% reduction in SMD by 2023 by expanding its collection, which requires huge additional investments and additional information about the economic value or benefits of the reduction. This article seeks to conduct an economic valuation of the reduction by employing contingent valuation (CV), which asks people to indicate their willingness to pay (WTP) for the reduction. A dichotomous choice CV survey was undertaken with 1000 households by a professional survey firm through person-to-person interviews during July 2019. Overall, people understood the CV questions well and reported the WTP responses for a hypothetical market successfully created with CV. Although 37.9% of interviewees stated zero WTP, the average of the yearly household WTP was estimated as 5523 Korean won (KRW) (USD 4.92). This value ensures statistical significance. The population’s WTP for the reduction would be KRW 110.30 billion (USD 99.75 million) per year over the next five years. It was found that the reduction is socially beneficial since the value was greater than the costs involved in the reduction. Full article
(This article belongs to the Special Issue Sustainable Environmental Solutions)
13 pages, 1821 KiB  
Article
Households’ Willingness to Pay for Substituting Natural Gas with Renewable Methane: A Contingent Valuation Experiment in South Korea
by Sung-Min Kim, Ju-Hee Kim and Seung-Hoon Yoo
Energies 2020, 13(12), 3082; https://doi.org/10.3390/en13123082 - 15 Jun 2020
Cited by 7 | Viewed by 3163
Abstract
South Korea is planning to substitute some residential natural gas (NG), a fossil fuel that relies on imports, with renewable methane (RM) from bio-gas, a renewable energy source. Thus, information about households’ willingness to pay (WTP) for implementing the plan is widely needed. [...] Read more.
South Korea is planning to substitute some residential natural gas (NG), a fossil fuel that relies on imports, with renewable methane (RM) from bio-gas, a renewable energy source. Thus, information about households’ willingness to pay (WTP) for implementing the plan is widely needed. This article, therefore, examines the WTP using an economic approach of contingent valuation (CV). More specifically, 1000 households were asked about the additional WTP for RM over NG through in-person face-to-face surveys across the country, adopting a dichotomous choice question format, during August 2018. As a few interviewees responded zero WTP for various reasons, a spike model that could reflect zero WTP observations was utilized. The household additional WTP for RM over NG was estimated, with statistical significance, as 191.46 Korean won (USD 0.17) per m3 and worth 31.9% of the average price of residential NG. This value means a price premium for RM compared to NG. In other words, this study found that South Korean consumers value residential RM about 1.32 times as much as residential NG. These results from the CV experiment could be a useful reference in establishing and implementing RM-related policies. Full article
(This article belongs to the Special Issue Production and Utilization of Biogas 2020)
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