Public value of enforcing the PM_2.5 concentration reduction policy in South Korean Urban Areas

As the number of cars and the electricity produced from coal-fired generation has been increasing, PM_2.5, particles smaller than 2.5 μm in diameter, has become a serious problem in South Korean urban areas. This is especially notable, given that the PM_2.5 warning was issued 89 times during 2016. Because of this, the South Korean government is seeking to enforce a policy of reducing the number of PM_2.5 warnings by half using various policy instruments from now until 2022. This article tries to obtain information about the public value of the enforcement. For this purpose, household willingness to pay (WTP) for the enforcement is investigated, applying the contingent valuation (CV) approach. A survey of 1000 households was carried out in South Korean urban areas. The data on the WTP were gathered using a dichotomous choice question and analyzed employing the spike model. The mean WTP estimate is obtained as KRW 5591 (USD 4.97) per household per year, which is statistically significant. The total public value expanded to the population amounts to KRW 98.9 billion (USD 87.8 million) per year. The information can be utilized in policy-making and decision-making about the reduction of the PM_2.5 concentration.