IDEAS home Printed from
   My bibliography  Save this article

Using Contingent Valuation and Numerical Methods to Determine Optimal Locations for Environmental Facilities: Public Arboretums in South Korea


  • Choi, Hyunhong
  • Koo, Yoonmo


Because the social benefit generated from a public facility varies according to its accessibility, population density of location, local income level, local taste, and the existence of similar nearby facilities, the value of facilities can vary depending on their location. Therefore, determining the ideal location is an important problem. This study provides a new direction for solving this problem by combining the contingent valuation (CV) method and nested partitions (NP) algorithm using siting of public arboretums as an example. First, consumers' willingness to pay for environmental facilities considering household characteristics and distance to both newly built and existing facilities are estimated using the CV method. In this process, consumers are divided into two groups (active and passive users), assuming they have different willingness to pay for the facilities. Then, using the results of the CV, the NP algorithm, a simulation-based discrete optimization technique, is constructed to efficiently identify optimal locations that maximize social benefit considering regional characteristics. The results of the proposed algorithm exceeded the performance of the benchmark case, and this study's findings can be used to aid decisions about complicated multiple facility locations. Moreover, visualized results are provided, which can be useful for local and central decision makers.

Suggested Citation

  • Choi, Hyunhong & Koo, Yoonmo, 2018. "Using Contingent Valuation and Numerical Methods to Determine Optimal Locations for Environmental Facilities: Public Arboretums in South Korea," Ecological Economics, Elsevier, vol. 149(C), pages 184-201.
  • Handle: RePEc:eee:ecolec:v:149:y:2018:i:c:p:184-201
    DOI: 10.1016/j.ecolecon.2018.03.017

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Lee, Misuk & Choi, Hyunhong & Koo, Yoonmo, 2017. "Inconvenience cost of waste disposal behavior in South Korea," Ecological Economics, Elsevier, vol. 140(C), pages 58-65.
    2. W. Viscusi & Joel Huber & Jason Bell, 2008. "The Economic Value of Water Quality," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(2), pages 169-187, October.
    3. Cho, Seong-Hoon & Roberts, Roland K. & Kim, Seung Gyu, 2011. "Negative externalities on property values resulting from water impairment: The case of the Pigeon River Watershed," Ecological Economics, Elsevier, vol. 70(12), pages 2390-2399.
    4. Bateman, Ian J. & Day, Brett H. & Georgiou, Stavros & Lake, Iain, 2006. "The aggregation of environmental benefit values: Welfare measures, distance decay and total WTP," Ecological Economics, Elsevier, vol. 60(2), pages 450-460, December.
    5. Amirnejad, Hamid & Khalilian, Sadegh & Assareh, Mohammad H. & Ahmadian, Majid, 2006. "Estimating the existence value of north forests of Iran by using a contingent valuation method," Ecological Economics, Elsevier, vol. 58(4), pages 665-675, July.
    6. Zhenyuan Liu & Lei Xiao & Jing Tian, 2016. "An activity-list-based nested partitions algorithm for resource-constrained project scheduling," International Journal of Production Research, Taylor & Francis Journals, vol. 54(16), pages 4744-4758, August.
    7. Harrington, Winston & Krupnick, Alan J. & Spofford, Walter Jr., 1989. "The economic losses of a waterborne disease outbreak," Journal of Urban Economics, Elsevier, vol. 25(1), pages 116-137, January.
    8. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    9. Karen Mayor & Susan Scott & Richard S.J. Tol, 2007. "Comparing the Travel Cost Method and the Contingent Valuation Method ? An application of Convergent Validity Theory to the Recreational Value of Irish Forests," Papers WP190, Economic and Social Research Institute (ESRI).
    10. Barrio, Melina & Loureiro, Maria L., 2010. "A meta-analysis of contingent valuation forest studies," Ecological Economics, Elsevier, vol. 69(5), pages 1023-1030, March.
    11. Ian Bateman & Ian Langford, 1997. "Non-users' Willingness to Pay for a National Park: An Application and Critique of the Contingent Valuation Method," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 571-582.
    12. Leyuan Shi & Sigurdur Ólafsson, 2000. "Nested Partitions Method for Global Optimization," Operations Research, INFORMS, vol. 48(3), pages 390-407, June.
    13. Pate, Jennifer & Loomis, John, 1997. "The effect of distance on willingness to pay values: a case study of wetlands and salmon in California," Ecological Economics, Elsevier, vol. 20(3), pages 199-207, March.
    14. Zhang, Jing, 2012. "The impact of water quality on health: Evidence from the drinking water infrastructure program in rural China," Journal of Health Economics, Elsevier, vol. 31(1), pages 122-134.
    15. Ronald J. Sutherland & Richard G. Walsh, 1985. "Effect of Distance on the Preservation Value of Water Quality," Land Economics, University of Wisconsin Press, vol. 64(3), pages 281-291.
    16. Jørgensen, Sisse Liv & Olsen, Søren Bøye & Ladenburg, Jacob & Martinsen, Louise & Svenningsen, Stig Roar & Hasler, Berit, 2013. "Spatially induced disparities in users' and non-users' WTP for water quality improvements—Testing the effect of multiple substitutes and distance decay," Ecological Economics, Elsevier, vol. 92(C), pages 58-66.
    17. Christie, Michael & Hanley, Nick & Hynes, Stephen, 2007. "Valuing enhancements to forest recreation using choice experiment and contingent behaviour methods," Journal of Forest Economics, Elsevier, vol. 13(2-3), pages 75-102, August.
    18. Votsis, Athanasios, 2017. "Planning for green infrastructure: The spatial effects of parks, forests, and fields on Helsinki's apartment prices," Ecological Economics, Elsevier, vol. 132(C), pages 279-289.
    19. K. G. Willis & G. D. Garrod, 1991. "An Individual Travel‐Cost Method Of Evaluating Forest Recreation," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 33-42, January.
    20. Hoksung Yau & Leyuan Shi, 2009. "Nested partitions for the large-scale extended job shop scheduling problem," Annals of Operations Research, Springer, vol. 168(1), pages 23-39, April.
    Full references (including those not matched with items on IDEAS)


    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:eee:ecolec:v:149:y:2018:i:c:p:184-201. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.