Using a choice experiment to measure the environmental costs of air pollution impacts in Seoul

Seung Hoon Yoo, Seung-Jun Kwak, Joo S. Lee

Research output: Contribution to journalArticle

53 Citations (Scopus)

Abstract

Air pollution, a by-product of economic growth, has been incurring extensive environmental costs in Seoul, Korea. Unfortunately, air pollution impacts are not treated as a commercial item, and thus it is difficult to measure the environmental costs arising from air pollution. There is an imminent need to find a way to measure air pollution impacts so that appropriate actions can be taken to control air pollution. Therefore, this study attempts to apply a choice experiment to quantifying the environmental costs of four air pollution impacts (mortality, morbidity, soiling damage, and poor visibility), using a specific case study of Seoul. We consider the trade-offs between price and attributes of air pollution impacts for selecting a preferred alternative and derive the marginal willingness to pay (WTP) estimate for each attribute. According to the results, the households' monthly WTP for a 10% reduction in the concentrations of major pollutants in Seoul was found to be approximately 5494 Korean won (USD 4.6) and the total annual WTP for the entire population of Seoul was about 203.4 billion Korean won (USD 169.5 million). This study is expected to provide policy-makers with useful information for evaluating and planning environmental policies relating specifically to air pollution.

Original languageEnglish
Pages (from-to)308-318
Number of pages11
JournalJournal of Environmental Management
Volume86
Issue number1
DOIs
Publication statusPublished - 2008 Jan 1

Fingerprint

Air Pollution
Air pollution
atmospheric pollution
Costs and Cost Analysis
Costs
willingness to pay
experiment
Experiments
Environmental Policy
Air pollution control
Economic Development
Seoul
environmental cost
Visibility
morbidity
Korea
Byproducts
Administrative Personnel
visibility
environmental policy

Keywords

  • Air pollution
  • Choice experiment
  • Environmental cost
  • Multinomial logit model

ASJC Scopus subject areas

  • Environmental Science(all)
  • Management, Monitoring, Policy and Law

Cite this

Using a choice experiment to measure the environmental costs of air pollution impacts in Seoul. / Yoo, Seung Hoon; Kwak, Seung-Jun; Lee, Joo S.

In: Journal of Environmental Management, Vol. 86, No. 1, 01.01.2008, p. 308-318.

Research output: Contribution to journalArticle

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