IDEAS home Printed from https://ideas.repec.org/p/ags/aesc18/273472.html
   My bibliography  Save this paper

Improving Drinking Water Quality in South Korea: A Choice Experiment

Author

Listed:
  • Gschwandtner, Adelina
  • Jang, Cheul
  • McManus, Richard

Abstract

Increased pollution leads to a constant decrease of drinking water quality worldwide. Due to safety concerns, unpleasant taste and odour only about 3% of the population in South Korea is drinking untreated tap water. The present study uses choice experiments and cost-benefit analysis to investigate the feasibility of installing advanced water treatments in Cheongju waterworks in South Korea. The waterworks is situated in the middle of the country and is providing more than half a million people with drinking water. The study shows that the lower bound of the median WTP for installing a new advanced water treatment system is about $ 2 US/month, which is similar to the average expenditures for bottled water per household in South Korea. Scenarios under which the instalment of the advanced water treatments is feasible are discussed together with environmental solutions in the long-run.

Suggested Citation

  • Gschwandtner, Adelina & Jang, Cheul & McManus, Richard, 2018. "Improving Drinking Water Quality in South Korea: A Choice Experiment," 92nd Annual Conference, April 16-18, 2018, Warwick University, Coventry, UK 273472, Agricultural Economics Society.
    • Handle: RePEc:ags:aesc18:273472
    DOI: 10.22004/ag.econ.273472
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/273472/files/Adelina_Gschwandtner_Gschwandtner_etal%282017%29SKWater_AES2018.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.273472?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mariel, Petr & Hoyos, D. & Meyerhoff, J., 2013. "Stated or inferred attribute non-attendance? A simulation approach," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 13(01).
    2. Michael Burton & Abbie Rogers & Claire Richert, 2017. "Community acceptance of biodiversity offsets: evidence from a choice experiment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(1), pages 95-114, January.
    3. Joseph Farrell & Matthew Rabin, 1996. "Cheap Talk," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 103-118, Summer.
    4. Catherine M. Chambers & Paul E. Chambers & John C. Whitehead, 1998. "Contingent Valuation of Quasi-Public Goods: Validity, Reliability, and Application To Valuing a Historic Site," Public Finance Review, , vol. 26(2), pages 137-154, March.
    5. Danny Campbell & David A. Hensher & Riccardo Scarpa, 2011. "Non-attendance to attributes in environmental choice analysis: a latent class specification," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(8), pages 1061-1076, December.
    6. Nicolas Jacquemet & Alexander James & Stéphane Luchini & Jason Shogren, 2011. "Social Psychology and Environmental Economics: A New Look at ex ante Corrections of Biased Preference Evaluation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(3), pages 413-433, March.
    7. Hammitt, James K. & Herrera-Araujo, Daniel, 2018. "Peeling back the onion: Using latent class analysis to uncover heterogeneous responses to stated preference surveys," Journal of Environmental Economics and Management, Elsevier, vol. 87(C), pages 165-189.
    8. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
    9. Glynn T. Tonsor & Robert S. Shupp, 2011. "Cheap Talk Scripts and Online Choice Experiments: "Looking Beyond the Mean"," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(4), pages 1015-1031.
    10. Danny Campbell & W. Hutchinson & Riccardo Scarpa, 2008. "Incorporating Discontinuous Preferences into the Analysis of Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(3), pages 401-417, November.
    11. Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
    12. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
    13. repec:feb:framed:0073 is not listed on IDEAS
    14. Carlsson, Fredrik & Frykblom, Peter & Johan Lagerkvist, Carl, 2005. "Using cheap talk as a test of validity in choice experiments," Economics Letters, Elsevier, vol. 89(2), pages 147-152, November.
    15. Erik Meijer & Jan Rouwendal, 2006. "Measuring welfare effects in models with random coefficients," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(2), pages 227-244, March.
    16. Tanya L. Chartrand & Joel Huber & Baba Shiv & Robin J. Tanner, 2008. "Nonconscious Goals and Consumer Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(2), pages 189-201, April.
    17. Ahlheim, Michael & Schneider, Friedrich, 2013. "Considering Household Size in Contingent Valuation Studies," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79974, Verein für Socialpolitik / German Economic Association.
    18. Champ, Patricia A. & Moore, Rebecca & Bishop, Richard C., 2009. "A Comparison of Approaches to Mitigate Hypothetical Bias," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), pages 1-15, October.
    19. Craig E. Landry & John A. List, 2007. "Using Ex Ante Approaches to Obtain Credible Signals for Value in Contingent Markets: Evidence from the Field," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 420-429.
    20. Kelvin Balcombe & Iain Fraser & Ben Lowe & Diogo Souza Monteiro, 2016. "Information Customization and Food Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(1), pages 54-73.
    21. David Hensher & Nina Shore & Kenneth Train, 2005. "Households’ Willingness to Pay for Water Service Attributes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(4), pages 509-531, December.
    22. Brown, Thomas C. & Ajzen, Icek & Hrubes, Daniel, 2003. "Further tests of entreaties to avoid hypothetical bias in referendum contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 353-361, September.
    23. Enoch M. Kikulwe & Ekin Birol & Justus Wesseler & José Falck‐Zepeda, 2011. "A latent class approach to investigating demand for genetically modified banana in Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 42(5), pages 547-560, September.
    24. Gelsomina CATALANO & Massimo FLORIO & Francesco GIFFONI, 2016. "Willingness to Pay for Basic Research: A Contingent Valuation Experiment on the Large Hadron Collider," Departmental Working Papers 2016-03, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    25. Kerr, Geoffrey N. & Sharp, Basil M.H., 2009. "Efficient design for willingness to pay in choice experiments: evidence from the field," 2009 Conference, August 27-28, 2009, Nelson, New Zealand 97156, New Zealand Agricultural and Resource Economics Society.
    26. Champ, Patricia A. & Moore, Rebecca & Bishop, Richard C., 2009. "A Comparison of Approaches to Mitigate Hypothetical Bias," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(2), pages 166-180, October.
    27. Seung-Hoon Yoo & Hee-Jong Yang, 2001. "Application of Sample Selection Model to Double-Bounded Dichotomous Choice Contingent Valuation Studies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(2), pages 147-163, October.
    28. Hensher,David A. & Rose,John M. & Greene,William H., 2015. "Applied Choice Analysis," Cambridge Books, Cambridge University Press, number 9781107465923.
    29. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
    30. Riccardo Scarpa & Mara Thiene, 2005. "Destination Choice Models for Rock Climbing in the Northeastern Alps: A Latent-Class Approach Based on Intensity of Preferences," Land Economics, University of Wisconsin Press, vol. 81(3).
    31. Tiziana de-Magistris & Azucena Gracia & Rodolfo M. Nayga, 2013. "On the Use of Honesty Priming Tasks to Mitigate Hypothetical Bias in Choice Experiments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1136-1154.
    32. David Aadland & Arthur J. Caplan, 2003. "Willingness to Pay for Curbside Recycling with Detection and Mitigation of Hypothetical Bias," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 492-502.
    33. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adelina Gshwandtner & Cheul Jang & Richard McManus, 2017. "Improving Drinking Quality in South Korea: A Choice Experiment," Studies in Economics 1720, School of Economics, University of Kent.
    2. Adelina Gschwandtner & Michael Burton, 2017. "The Willingness to Pay for Organic Attributes in the UK," Studies in Economics 1702, School of Economics, University of Kent.
    3. Mohammed H. Alemu & Søren B. Olsen, 2017. "Can a Repeated Opt-Out Reminder remove hypothetical bias in discrete choice experiments? An application to consumer valuation of novel food products," IFRO Working Paper 2017/05, University of Copenhagen, Department of Food and Resource Economics.
    4. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    5. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    6. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part II. Conceptualisation of external validity, sources and explanations of bias and effectiveness of mitigation methods," Journal of choice modelling, Elsevier, vol. 41(C).
    7. Milad Haghani & Michiel C. J. Bliemer & John M. Rose & Harmen Oppewal & Emily Lancsar, 2021. "Hypothetical bias in stated choice experiments: Part II. Macro-scale analysis of literature and effectiveness of bias mitigation methods," Papers 2102.02945, arXiv.org.
    8. Penn, Jerrod & Hu, Wuyang, 2016. "Making the Most of Cheap Talk in an Online Survey," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236171, Agricultural and Applied Economics Association.
    9. Sergio Colombo & Wiktor Budziński & Mikołaj Czajkowski & Klaus Glenk, 2022. "The relative performance of ex‐ante and ex‐post measures to mitigate hypothetical and strategic bias in a stated preference study," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 845-873, September.
    10. Zhai, Qianqian & Kassas, Bachir & Zhao, Shuoli & Chen, Lijun & Chen, Chao, 2020. "Investigating Preference Inconsistencies in Incentive Structures that Account for House Money Effects," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304584, Agricultural and Applied Economics Association.
    11. Adelina Gschwandtner & Jose Eduardo Ribeiro & Cesar Revoredo-Giha & Michael Burton, 2021. "Combining Stated and Revealed Preferences for valuing Organic Chicken Meat," Studies in Economics 2113, School of Economics, University of Kent.
    12. Quainoo, Ruth & Petrolia, Daniel, 2018. "Mitigating Hypothetical Bias: An Application to WTP for Beach Conditions Information," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266715, Southern Agricultural Economics Association.
    13. Reinhard Uehleke & Bodo Sturm, 2017. "The Influence of Collective Action on the Demand for Voluntary Climate Change Mitigation in Hypothetical and Real Situations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 429-454, July.
    14. Dominique Ami & Frédéric Aprahamian & Olivier Chanel & Stéphane Luchini, 2011. "A Test of Cheap Talk in Different Hypothetical Contexts: The Case of Air Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 111-130, September.
    15. Ladenburg, Jacob & Skotte, Maria, 2022. "Heterogeneity in willingness to pay for the location of offshore wind power development: An application of the willingness to pay space model," Energy, Elsevier, vol. 241(C).
    16. Iván Pérez-Rubio & Daniel Flores & Christian Vargas & Francisco Jiménez & Iker Etxano, 2021. "To What Extent Are Cattle Ranching Landholders Willing to Restore Ecosystem Services? Constructing a Micro-Scale PES Scheme in Southern Costa Rica," Land, MDPI, vol. 10(7), pages 1-24, July.
    17. Sergio Colombo & Wiktor Budziński & Mikołaj Czajkowski & Klaus Glenk, 2020. "Ex-ante and ex-post measures to mitigate hypothetical bias. Are they alternative or complementary tools to increase the reliability and validity of DCE estimates?," Working Papers 2020-20, Faculty of Economic Sciences, University of Warsaw.
    18. Loomis, John B., 2014. "2013 WAEA Keynote Address: Strategies for Overcoming Hypothetical Bias in Stated Preference Surveys," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-13, April.
    19. Rombach, Meike & Widmar, Nicole Olynk & Byrd, Elizabeth & Bitsch, Vera, 2018. "Do all roses smell equally sweet? Willingness to pay for flower attributes in specialized retail settings by German consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 91-99.
    20. Donfouet, Hermann Pythagore Pierre & Mohamed, Shukri F. & Otieno, Peter & Wambiya, Elvis & Mutua, Martin Kavao & Danaei, Goodarz, 2020. "Economic valuation of setting up a social health enterprise in urban poor-resource setting in Kenya," Social Science & Medicine, Elsevier, vol. 266(C).

    More about this item

    Keywords

    Environmental Economics and Policy; International Development;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aesc18:273472. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesukea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.