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Improving Drinking Quality in South Korea: A Choice Experiment

Author

Listed:
  • Adelina Gshwandtner
  • Cheul Jang
  • Richard McManus

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

  • 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.
    • Handle: RePEc:ukc:ukcedp:1720
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    File URL: https://www.kent.ac.uk/economics/repec/1720.pdf
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    More about this item

    Keywords

    Drinking Water Quality; Water Pollution; Choice Experiments; Willingness to Pay; Random Parameter and Latent Class Logit; Cost-Benefit Analysis;
    All these keywords.

    JEL classification:

    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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