Abstract
This article aims to assess the economic benefits of restoring the ecological integrity of Jeonju stream, Korea and then conduct an ex post cost-benefit analysis of the restoration. The benefits are measured by using the contingent valuation eliciting the local residents’ willingness to pay (WTP) for the restoration supposing that the restoration had not been implemented. The mean yearly WTP for the restoration is calculated to be KRW 2897 (USD 2.46) per household for the next 10 years. The costs of the restoration include the costs of restoring the ecological integrity for 2 years and maintaining it for the next 50 years. The ratio of benefit over cost, the net present value and the internal rate of return are estimated as 1.1, KRW 0.5 billion (USD 0.4 million) and 6.4%, respectively, which exceed 1.0, 0 and social discount rate of 5.5%, respectively. The results show that the restoration is socially profitable.
| Original language | English |
|---|---|
| Pages (from-to) | 476-480 |
| Number of pages | 5 |
| Journal | Water and Environment Journal |
| Volume | 32 |
| Issue number | 3 |
| DOIs | |
| State | Published - Aug 2018 |
Keywords
- contingent valuation
- cost-benefit analysis
- ecological integrity
- Korea
- restoration
- willingness to pay
