Valuing environmental impacts of large dam construction in Korea: An application of choice experiments

Sang Yong Han, Seung-Jun Kwak, Seung Hoon Yoo

Research output: Contribution to journalArticle

44 Citations (Scopus)

Abstract

This paper measures economic value of multiple environmental impacts of large dam construction as a case study of Korea, using a choice experiment approach. The choice works which consider trade-offs between price and environmental attributes for selecting a preferred option were within respondents' ability, and the marginal willingness-to-pay estimates across the two models were statistically significant. Especially, adding covariates does not significantly change the marginal willingness-to-pay estimates for each attribute. Monthly willingness-to-pay of the typical household for mitigating environmental impacts by large dam construction from the status quo to the highest attribute level is calculated as about 2542 Korean Won (US $ 2.12) and the total willingness-to-pay for the entire population of the study area is annually about 209.9 billion Korean Won (US $ 174.9 million). This study allows us to provide policy-makers with quantitative information that can be useful in the cost-benefit analysis related to large dam construction projects.

Original languageEnglish
Pages (from-to)256-266
Number of pages11
JournalEnvironmental Impact Assessment Review
Volume28
Issue number4-5
DOIs
Publication statusPublished - 2008 May 1

Fingerprint

dam construction
willingness to pay
Dams
Korea
Environmental impact
environmental impact
experiment
Cost benefit analysis
Experiments
economic value
cost-benefit analysis
Economics
ability
economics
attribute

Keywords

  • Choice experiment approach
  • Dam construction
  • Environmental impacts
  • Multinomial logit model
  • Willingness-to-pay

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment
  • Environmental Science(all)
  • Management, Monitoring, Policy and Law
  • Geography, Planning and Development

Cite this

Valuing environmental impacts of large dam construction in Korea : An application of choice experiments. / Han, Sang Yong; Kwak, Seung-Jun; Yoo, Seung Hoon.

In: Environmental Impact Assessment Review, Vol. 28, No. 4-5, 01.05.2008, p. 256-266.

Research output: Contribution to journalArticle

@article{6f12b40a2cc34ddbb62adae184d9620e,
title = "Valuing environmental impacts of large dam construction in Korea: An application of choice experiments",
abstract = "This paper measures economic value of multiple environmental impacts of large dam construction as a case study of Korea, using a choice experiment approach. The choice works which consider trade-offs between price and environmental attributes for selecting a preferred option were within respondents' ability, and the marginal willingness-to-pay estimates across the two models were statistically significant. Especially, adding covariates does not significantly change the marginal willingness-to-pay estimates for each attribute. Monthly willingness-to-pay of the typical household for mitigating environmental impacts by large dam construction from the status quo to the highest attribute level is calculated as about 2542 Korean Won (US $ 2.12) and the total willingness-to-pay for the entire population of the study area is annually about 209.9 billion Korean Won (US $ 174.9 million). This study allows us to provide policy-makers with quantitative information that can be useful in the cost-benefit analysis related to large dam construction projects.",
keywords = "Choice experiment approach, Dam construction, Environmental impacts, Multinomial logit model, Willingness-to-pay",
author = "Han, {Sang Yong} and Seung-Jun Kwak and Yoo, {Seung Hoon}",
year = "2008",
month = "5",
day = "1",
doi = "10.1016/j.eiar.2007.07.001",
language = "English",
volume = "28",
pages = "256--266",
journal = "Environmental Impact Assessment Review",
issn = "0195-9255",
publisher = "Elsevier Inc.",
number = "4-5",

}

TY - JOUR

T1 - Valuing environmental impacts of large dam construction in Korea

T2 - An application of choice experiments

AU - Han, Sang Yong

AU - Kwak, Seung-Jun

AU - Yoo, Seung Hoon

PY - 2008/5/1

Y1 - 2008/5/1

N2 - This paper measures economic value of multiple environmental impacts of large dam construction as a case study of Korea, using a choice experiment approach. The choice works which consider trade-offs between price and environmental attributes for selecting a preferred option were within respondents' ability, and the marginal willingness-to-pay estimates across the two models were statistically significant. Especially, adding covariates does not significantly change the marginal willingness-to-pay estimates for each attribute. Monthly willingness-to-pay of the typical household for mitigating environmental impacts by large dam construction from the status quo to the highest attribute level is calculated as about 2542 Korean Won (US $ 2.12) and the total willingness-to-pay for the entire population of the study area is annually about 209.9 billion Korean Won (US $ 174.9 million). This study allows us to provide policy-makers with quantitative information that can be useful in the cost-benefit analysis related to large dam construction projects.

AB - This paper measures economic value of multiple environmental impacts of large dam construction as a case study of Korea, using a choice experiment approach. The choice works which consider trade-offs between price and environmental attributes for selecting a preferred option were within respondents' ability, and the marginal willingness-to-pay estimates across the two models were statistically significant. Especially, adding covariates does not significantly change the marginal willingness-to-pay estimates for each attribute. Monthly willingness-to-pay of the typical household for mitigating environmental impacts by large dam construction from the status quo to the highest attribute level is calculated as about 2542 Korean Won (US $ 2.12) and the total willingness-to-pay for the entire population of the study area is annually about 209.9 billion Korean Won (US $ 174.9 million). This study allows us to provide policy-makers with quantitative information that can be useful in the cost-benefit analysis related to large dam construction projects.

KW - Choice experiment approach

KW - Dam construction

KW - Environmental impacts

KW - Multinomial logit model

KW - Willingness-to-pay

UR - http://www.scopus.com/inward/record.url?scp=41949140817&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=41949140817&partnerID=8YFLogxK

U2 - 10.1016/j.eiar.2007.07.001

DO - 10.1016/j.eiar.2007.07.001

M3 - Article

AN - SCOPUS:41949140817

VL - 28

SP - 256

EP - 266

JO - Environmental Impact Assessment Review

JF - Environmental Impact Assessment Review

SN - 0195-9255

IS - 4-5

ER -