Measuring the environmental value of Saeng Island in Busan, Korea with allowing for zero values

Won-Keun Chang^*, Chul-Oh Shin^*, Chul-Hwan Koh^**, Seung-Hoon Yoo^***

^*Ocean & Coastal Policy Research Department, Korea Maritime Institute, 1652, Sangamdong Mapogu Seoul, 121-270, Korea

^**School of Earth and Environmental Sciences, Seoul National University, 56-1 San, Shinrimdong Kwanakgu Seoul, 151-742, Korea

^***Corresponding Author: Department of International Area Studies, Hoseo University, 268 Anseodong, Cheonan, Chungnam, 330-713, Korea E-mail: shyoo@hoseo.edu Telephone: 82-41-560-8344 Fax: 82-41-563-0135

© Copyright 2021 Korea Maritime Institute. This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Published Online: Jun 30, 2009

ABSTRACT

This paper attempts to deal with zero willingness to pay (WTP) responses from dichotomous choice (DC) contingent valuation (CV) surveys. It also will apply a recently proposed one-and-one-half-bound (OOHB) question format in order to obtain an appropriate welfare measure such as the mean WTP. To this end, the spike model suggested by Kriström (1997) is adjusted and applied to modeling OOHB DC-CV data with zero WTP responses. The mean WTP per household was 2,716 Korean won per annum and the overall results show that the OOHB spike model outperforms the conventional OOHB model significantly.

Keywords: willingness to pay; contingent valuation; spike model; one-and-one-half-bound