IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v8y2016i9p834-d76553.html
   My bibliography  Save this article

The Economic Value of the National Meteorological Service in the Korean Household Sector: A Contingent Valuation Study

Author

Listed:
  • So-Yeon Park

    (Graduate School of Energy & Environment, Seoul National University of Science and Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, Korea)

  • Seul-Ye Lim

    (Graduate School of Energy & Environment, Seoul National University of Science and Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, Korea)

  • Seung-Hoon Yoo

    (Graduate School of Energy & Environment, Seoul National University of Science and Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, Korea)

Abstract

The meteorological service (MS) in Korea is provided by the Korea Meteorological Administration (KMA), a governmental organization. This study attempts to measure the economic value of the national MS in the Korean household sector. Economic theory indicates that the economic value of a service is the area under the demand curve, which is the sum of the actual expenditure and the additional willingness to pay (WTP) for the service. The actual expenditure is well known, but the additional WTP is not. Thus, we assess the additional WTP for the national MS, conducting a contingent valuation survey of 1000 randomly selected households in Korea in 2014. We use a one-and-one-half-bound dichotomous choice question to derive the WTP responses and apply a spike model to deal with WTP responses of zero. The mean additional WTP per household is computed as KRW 860 (USD 0.75) per month and is statistically significant at the 1% level. Given that the monthly expenditure for the MS is KRW 1459 (USD 1.26) per household as of 2013, the economic value of the national MS is computed as KRW 2319 (USD 2.01) per household per month. Expanding the value to the national population gives us KRW 513.6 billion (USD 444.9 million) per year.

Suggested Citation

  • So-Yeon Park & Seul-Ye Lim & Seung-Hoon Yoo, 2016. "The Economic Value of the National Meteorological Service in the Korean Household Sector: A Contingent Valuation Study," Sustainability, MDPI, vol. 8(9), pages 1-13, August.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:9:p:834-:d:76553
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/8/9/834/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/8/9/834/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bateman, Ian J. & Langford, Ian H. & Jones, Andrew P. & Kerr, Geoffrey N., 2001. "Bound and path effects in double and triple bounded dichotomous choice contingent valuation," Resource and Energy Economics, Elsevier, vol. 23(3), pages 191-213, July.
    2. Park, Sun-Young & Yoo, Seung-Hoon, 2013. "The economic value of LNG in the Korean manufacturing industry," Energy Policy, Elsevier, vol. 58(C), pages 403-407.
    3. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    4. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 2.
    5. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    6. Daniel McFadden, 1994. "Contingent Valuation and Social Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 689-708.
    7. Michael Hanemann & John Loomis & Barbara Kanninen, 1991. "Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1255-1263.
    8. McConnell, K. E., 1990. "Models for referendum data: The structure of discrete choice models for contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 19-34, January.
    9. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 4.
    10. Se-Ju Ku & Seung-Hoon Yoo, 2012. "Economic Value of Water in the Korean Manufacturing Industry," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(1), pages 81-88, January.
    11. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 3.
    12. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 1.
    13. Lim, Seul-Ye & Kim, Hyo-Jin & Yoo, Seung-Hoon, 2016. "The demand function for residential heat through district heating system and its consumption benefits in Korea," Energy Policy, Elsevier, vol. 97(C), pages 155-160.
    14. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 4.
    15. Joseph C. Cooper & Michael Hanemann & Giovanni Signorello, 2002. "One-and-One-Half-Bound Dichotomous Choice Contingent Valuation," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 742-750, November.
    16. Lazo, Jeffrey K. & Waldman, Donald M., 2011. "Valuing improved hurricane forecasts," Economics Letters, Elsevier, vol. 111(1), pages 43-46, April.
    17. Guizhi Wang & Yingxi Song & Jibo Chen & Jun Yu, 2016. "Valuation of Haze Management and Prevention Using the Contingent Valuation Method with the Sure Independence Screening Algorithm," Sustainability, MDPI, vol. 8(4), pages 1-11, March.
    18. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
    19. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 3.
    20. Editorial Article, 0. "The Information for Authors," Economics of Contemporary Russia, Regional Public Organization for Assistance to the Development of Institutions of the Department of Economics of the Russian Academy of Sciences, issue 2.
    21. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shaoai Liu & Wan-Yi Li, 2020. "Ecotourism Research Progress: A Bibliometric Analysis During 1990–2016," SAGE Open, , vol. 10(2), pages 21582440209, May.
    2. Ju-Hee Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "Consumers’ Willingness to Pay for Net-Zero Energy Apartment in South Korea," Sustainability, MDPI, vol. 10(5), pages 1-12, May.
    3. Ju-Hee Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "Public Value of Enforcing the PM 2.5 Concentration Reduction Policy in South Korean Urban Areas," Sustainability, MDPI, vol. 10(4), pages 1-14, April.
    4. Ju-Hee Kim & Kyung-Kyu Lim & Seung-Hoon Yoo, 2019. "Evaluating Residential Consumers’ Willingness to Pay to Avoid Power Outages in South Korea," Sustainability, MDPI, vol. 11(5), pages 1-12, February.
    5. Seo-Hyeon Min & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "Consumers’ Willingness to Pay a Premium for Eco-Labeled LED TVs in Korea: A Contingent Valuation Study," Sustainability, MDPI, vol. 9(5), pages 1-12, May.
    6. Seul-Ye Lim & Se-Jun Jin & Seung-Hoon Yoo, 2017. "The Economic Benefits of the Dokdo Seals Restoration Project in Korea: A Contingent Valuation Study," Sustainability, MDPI, vol. 9(6), pages 1-15, June.
    7. Hyo-Jin Kim & Ju-Hee Kim & Seung-Hoon Yoo, 2018. "Do People Place More Value on Natural Gas Than Coal for Power Generation to Abate Particulate Matter Emissions? Evidence from South Korea," Sustainability, MDPI, vol. 10(6), pages 1-10, May.
    8. Seul-Ye Lim & So-Yeon Park & Seung-Hoon Yoo, 2017. "The Environmental Conservation Value of the Saemangeum Open Sea in Korea," Sustainability, MDPI, vol. 9(11), pages 1-14, November.
    9. Ga-Eun Kim & Hye-Jeong Lee & Seung-Hoon Yoo, 2018. "Willingness to Pay for Substituting Coal with Natural Gas-Based Combined Heat and Power in South Korea: A View from Air Pollutants Emissions Mitigation," Sustainability, MDPI, vol. 10(5), pages 1-12, May.
    10. Ju-Hee Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "Economic Value of Building a Firefighter Training Academy for Urban Disaster Management in Seoul, South Korea," Sustainability, MDPI, vol. 10(12), pages 1-11, December.
    11. In-Gyum Kim & Hye-Min Kim & Dae-Geun Lee & Byunghwan Lim & Hee-Choon Lee, 2021. "Economic Value of Terminal Aerodrome Forecasts at Incheon Airport, South Korea," Sustainability, MDPI, vol. 13(12), pages 1-13, June.
    12. Joseph Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "Public Value of Marine Biodiesel Technology Development in South Korea," Sustainability, MDPI, vol. 10(11), pages 1-12, November.
    13. Min-Kyu Lee & Ju-Hee Kim & Seung-Hoon Yoo, 2018. "Public Willingness to Pay for Increasing Photovoltaic Power Generation: The Case of Korea," Sustainability, MDPI, vol. 10(4), pages 1-11, April.
    14. Hye-Jeong Lee & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "The Public Value of Reducing the Incidence of Oil Spill Accidents in Korean Rivers," Sustainability, MDPI, vol. 10(4), pages 1-12, April.
    15. Hyo-Jin Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "Are Korean Households Willing to Pay a Premium for Induction Cooktops over Gas Stoves?," Sustainability, MDPI, vol. 9(9), pages 1-10, August.
    16. Hye-Min Kim & In-Gyum Kim & Byunghwan Lim & Seung-Hoon Yoo, 2021. "Estimating the Economic Value of Improving the Asian Dust Aerosol Model in the Korean Household Sector: A Choice Experiment," Sustainability, MDPI, vol. 13(21), pages 1-11, November.

    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. Lim, Seul-Ye & Kim, Hyo-Jin & Yoo, Seung-Hoon, 2017. "Public's willingness to pay a premium for bioethanol in Korea: A contingent valuation study," Energy Policy, Elsevier, vol. 101(C), pages 20-27.
    2. Lim, Seul-Ye & Min, Seo-Hyeon & Yoo, Seung-Hoon, 2016. "The public value of contaminated soil remediation in Janghang copper smelter of Korea," Resources Policy, Elsevier, vol. 50(C), pages 66-74.
    3. Kim, Hyo-Jin & Lim, Seul-Ye & Yoo, Seung-Hoon, 2017. "The Korean public's willingness to pay for expanding the use of solid refuse fuel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 821-827.
    4. Ho-Young Kim & So-Yeon Park & Seung-Hoon Yoo, 2016. "Public Acceptability of Introducing a Biogas Mandate in Korea: A Contingent Valuation Study," Sustainability, MDPI, vol. 8(11), pages 1-16, October.
    5. Lim, Seul-Ye & Kim, Hyo-Jin & Yoo, Seung-Hoon, 2018. "Household willingness to pay for expanding fuel cell power generation in Korea: A view from CO2 emissions reduction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 242-249.
    6. Hyo-Jin Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "The Convenience Benefits of the District Heating System over Individual Heating Systems in Korean Households," Sustainability, MDPI, vol. 9(8), pages 1-12, August.
    7. Kritana Prueksakorn & Cheng-Xu Piao & Hyunchul Ha & Taehyeung Kim, 2015. "Computational and Experimental Investigation for an Optimal Design of Industrial Windows to Allow Natural Ventilation during Wind-Driven Rain," Sustainability, MDPI, vol. 7(8), pages 1-22, August.
    8. Hualin Xie & Jinlang Zou & Hailing Jiang & Ning Zhang & Yongrok Choi, 2014. "Spatiotemporal Pattern and Driving Forces of Arable Land-Use Intensity in China: Toward Sustainable Land Management Using Emergy Analysis," Sustainability, MDPI, vol. 6(6), pages 1-17, May.
    9. Stephan E. Maurer & Andrei V. Potlogea, 2021. "Male‐biased Demand Shocks and Women's Labour Force Participation: Evidence from Large Oil Field Discoveries," Economica, London School of Economics and Political Science, vol. 88(349), pages 167-188, January.
    10. Tie Hua Zhou & Ling Wang & Keun Ho Ryu, 2015. "Supporting Keyword Search for Image Retrieval with Integration of Probabilistic Annotation," Sustainability, MDPI, vol. 7(5), pages 1-18, May.
    11. T. Karski, 2019. "Opinions and Controversies in Problem of The So-Called Idiopathic Scoliosis. Information About Etiology, New Classification and New Therapy," Biomedical Journal of Scientific & Technical Research, Biomedical Research Network+, LLC, vol. 12(5), pages 9612-9616, January.
    12. Sung-Won Park & Sung-Yong Son, 2017. "Cost Analysis for a Hybrid Advanced Metering Infrastructure in Korea," Energies, MDPI, vol. 10(9), pages 1-18, September.
    13. Wesley Mendes-da-Silva, 2020. "What Makes an Article be More Cited?," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 24(6), pages 507-513.
    14. Martin Valtierra-Rodriguez & Juan Pablo Amezquita-Sanchez & Arturo Garcia-Perez & David Camarena-Martinez, 2019. "Complete Ensemble Empirical Mode Decomposition on FPGA for Condition Monitoring of Broken Bars in Induction Motors," Mathematics, MDPI, vol. 7(9), pages 1-19, August.
    15. Akca Yasar & Gokhan Ozer, 2016. "Determination the Factors that Affect the Use of Enterprise Resource Planning Information System through Technology Acceptance Model," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(10), pages 1-91, September.
    16. Julián Miranda & Angélica Flórez & Gustavo Ospina & Ciro Gamboa & Carlos Flórez & Miguel Altuve, 2020. "Proposal for a System Model for Offline Seismic Event Detection in Colombia," Future Internet, MDPI, vol. 12(12), pages 1-17, December.
    17. Wisdom Akpalu & Mintewab Bezabih, 2015. "Tenure Insecurity, Climate Variability and Renting out Decisions among Female Small-Holder Farmers in Ethiopia," Sustainability, MDPI, vol. 7(6), pages 1-16, June.
    18. Wei Chen & Shu-Yu Liu & Chih-Han Chen & Yi-Shan Lee, 2011. "Bounded Memory, Inertia, Sampling and Weighting Model for Market Entry Games," Games, MDPI, vol. 2(1), pages 1-13, March.
    19. David Harborth & Sebastian Pape, 2020. "Empirically Investigating Extraneous Influences on the “APCO” Model—Childhood Brand Nostalgia and the Positivity Bias," Future Internet, MDPI, vol. 12(12), pages 1-16, December.
    20. Ping Wang & Jie Wang & Guiwu Wei & Cun Wei, 2019. "Similarity Measures of q-Rung Orthopair Fuzzy Sets Based on Cosine Function and Their Applications," Mathematics, MDPI, vol. 7(4), pages 1-23, April.

    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:gam:jsusta:v:8:y:2016:i:9:p:834-:d:76553. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.