Public willingness to pay for chemical regulation in South Korea: the case of restriction on arsenic use

Regulations on chemicals aim to protect public health and the environment. However, owing to the nature of this chemical, it is difficult to determine its impact pathway. Thus, it is difficult to investigate the damage caused by chemicals. However, it is essential to evaluate the costs and benefits of chemicals to establish reasonable chemical regulations. Therefore, this study analyzes the benefits of strengthening the regulation of chemical substances in Korea using the conditional valuation method. In particular, this study evaluated the public benefit of the chemical regulation of arsenic, which is a carcinogen. Data were collected from 1000 households in Korea, and a one-and-one-half-bound dichotomous choice spike model was used. The results show that the average annual willingness to pay for additional income tax payments over 10 years to reduce the incidence of arsenic-related diseases is 4314 Korean won (3.67 USD), with 57.5% of households refusing to pay. Additional analysis indicates that females are more willing to pay, and a higher education level, knowledge of arsenic, and experience in using arsenic-free products and hand sanitizers lead to a higher willingness to pay. The results of this study can be used to establish an efficient level of arsenic regulations and determine their effect on the related market.