IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v50y2016icp66-74.html
   My bibliography  Save this article

The public value of contaminated soil remediation in Janghang copper smelter of Korea

Author

Listed:
  • Lim, Seul-Ye
  • Min, Seo-Hyeon
  • Yoo, Seung-Hoon

Abstract

The Korean government planned to remediate the soil contaminated with heavy metals, such as arsenic, cadmium, and lead, in Janghang copper smelter (JCS). The policy-makers are demanding a figure about the public value of the remediation. Therefore, this paper describes an attempt to measure the public value, applying the contingent valuation (CV) method. To this end, we conducted a CV survey of 1000 households in Korea in 2015. We used a one-and-one-half-bounded dichotomous choice question to derive the willingness to pay (WTP) responses, and utilized a spike model to analyze zero WTP responses. The mean WTP was computed to be KRW 1627 (USD 1.37) per household per year and statistically meaningful at the 1% level. Expanding the value to the national population gives us KRW 30.4 billion (USD 25.7 million) per year. The present value of the total public value for the next ten years reaches KRW 241.7 billion (USD 204.0 million), using a social discount rate of 5.5%. We can conclude that Korean households are ready to shoulder some of the financial burden for contaminated soil remediation in JCS. Moreover, we conducted economic feasibility analysis of the remediation and found that it is socially profitable.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jrpoli:v:50:y:2016:i:c:p:66-74
    DOI: 10.1016/j.resourpol.2016.08.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420716302173
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2016.08.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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. William Breffle & Edward Morey & Jennifer Thacher, 2011. "A Joint Latent-Class Model: Combining Likert-Scale Preference Statements With Choice Data to Harvest Preference Heterogeneity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 83-110, September.
    3. Söderholm, Kristina & Söderholm, Patrik & Helenius, Heidi & Pettersson, Maria & Viklund, Roine & Masloboev, Vladimir & Mingaleva, Tatiana & Petrov, Viktor, 2015. "Environmental regulation and competitiveness in the mining industry: Permitting processes with special focus on Finland, Sweden and Russia," Resources Policy, Elsevier, vol. 43(C), pages 130-142.
    4. Michael Ahlheim & Oliver Frör & Ulrike Lehr & Gerhard Wagenhals & Ursula Wolf, 2004. "Contingent Valuation of Mining Land Reclamation in East Germany," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 245/2004, Department of Economics, University of Hohenheim, Germany.
    5. Ivanova, Galina & Rolfe, John, 2011. "Assessing development options in mining communities using stated preference techniques," Resources Policy, Elsevier, vol. 36(3), pages 255-264, September.
    6. 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.
    7. McLeod, Helena, 2000. "Compensation for landowners affected by mineral development: the Fijian experience," Resources Policy, Elsevier, vol. 26(2), pages 115-125, June.
    8. Schoenberger, Erica, 2016. "Environmentally sustainable mining: The case of tailings storage facilities," Resources Policy, Elsevier, vol. 49(C), pages 119-128.
    9. 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.
    10. Daniel McFadden, 1994. "Contingent Valuation and Social Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 689-708.
    11. Egan, Kevin J. & Corrigan, Jay R. & Dwyer, Daryl F., 2015. "Three reasons to use annual payments in contingent valuation surveys: Convergent validity, discount rates, and mental accounting," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 123-136.
    12. Brown, Teresa & McEvoy, Fiona & Ward, John, 2011. "Aggregates in England—Economic contribution and environmental cost of indigenous supply," Resources Policy, Elsevier, vol. 36(4), pages 295-303.
    13. 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.
    14. 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.
    15. Yoo, Seung-Hoon, 2006. "Causal relationship between coal consumption and economic growth in Korea," Applied Energy, Elsevier, vol. 83(11), pages 1181-1189, November.
    16. Yoo, S.-H., 2006. "The causal relationship between electricity consumption and economic growth in the ASEAN countries," Energy Policy, Elsevier, vol. 34(18), pages 3573-3582, December.
    17. Pemberton, Carlisle A. & Harris-Charles, Emaline & Patterson-Andrews, Hazel, 2010. "Cultural bias in contingent valuation of copper mining in the Commonwealth of Dominica," Ecological Economics, Elsevier, vol. 70(1), pages 19-23, November.
    18. Lagos, Gustavo & Lehuede, Jose Miguel & Andia, Marcelo, 2001. "Sulfur dioxide abatement costs and compliance with health-based standards: the case of copper smelters," Resources Policy, Elsevier, vol. 27(3), pages 147-155, September.
    19. Seung-Hoon Yoo & Seung-Jun Kwak, 2002. "Using a spike model to deal with zero response data from double bounded dichotomous choice contingent valuation surveys," Applied Economics Letters, Taylor & Francis Journals, vol. 9(14), pages 929-932.
    20. 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.
    21. Kidido, J.K & Ayitey, J.Z & Kuusaana, E.D & Gavu, E.K, 2015. "Who is the rightful recipient of mining compensation for land use deprivation in Ghana?," Resources Policy, Elsevier, vol. 43(C), pages 19-27.
    22. Kwak, So-Yoon & Yoo, Seung-Hoon, 2015. "The public’s value for developing ocean energy technology in the Republic of Korea: A contingent valuation study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 432-439.
    23. Nicky J. Welton & Howard H. Z. Thom, 2015. "Value of Information," Medical Decision Making, , vol. 35(5), pages 564-566, July.
    24. Rieber, Michael, 1986. "The economics of copper smelter pollution control : A transnational example," Resources Policy, Elsevier, vol. 12(2), pages 87-102, June.
    25. 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.
    26. Häggquist, Elisabeth & Söderholm, Patrik, 2015. "The economic value of geological information: Synthesis and directions for future research," Resources Policy, Elsevier, vol. 43(C), pages 91-100.
    27. Willis, K. G. & Garrod, G. D., 1999. "Externalities from extraction of aggregates: Regulation by tax or land-use controls," Resources Policy, Elsevier, vol. 25(2), pages 77-86, June.
    28. Edward Morey & Jennifer Thacher & William Breffle, 2006. "Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 91-115, May.
    29. 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.
    30. Figueroa B., Eugenio & Orihuela R., Carlos & Calfucura T., Enrique, 2010. "Green accounting and sustainability of the Peruvian metal mining sector," Resources Policy, Elsevier, vol. 35(3), pages 156-167, September.
    31. Yoo, Seung-Hoon & Kwak, So-Yoon, 2009. "Willingness to pay for green electricity in Korea: A contingent valuation study," Energy Policy, Elsevier, vol. 37(12), pages 5408-5416, December.
    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. Kim, Ju-Hee & Kim, Kyung-Hag & Yoo, Seung-Hoon, 2022. "Evaluating and ranking the mining damage prevention programs in South Korea: An application of the fuzzy set theory," Resources Policy, Elsevier, vol. 78(C).
    2. Kim, Ju-Hee & Yoo, Seung-Hoon, 2020. "Public perspective on the environmental impacts of sea sand mining: Evidence from a choice experiment in South Korea," Resources Policy, Elsevier, vol. 69(C).
    3. Ju-Hee Kim & Younggew Kim & Seung-Hoon Yoo, 2021. "Using a choice experiment to explore the public willingness to pay for the impacts of improving energy efficiency of an apartment," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(5), pages 1775-1793, October.
    4. Hyunsoo Kim & Kanghee Cho & Oyunbileg Purev & Nagchoul Choi & Jaewon Lee, 2022. "Remediation of Toxic Heavy Metal Contaminated Soil by Combining a Washing Ejector Based on Hydrodynamic Cavitation and Soil Washing Process," IJERPH, MDPI, vol. 19(2), pages 1-14, January.

    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. 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.
    3. 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.
    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. Kim, Hyo-Jin & Lim, Seul-Ye & Yoo, Seung-Hoon, 2017. "Is the Korean public willing to pay for a decentralized generation source? The case of natural gas-based combined heat and power," Energy Policy, Elsevier, vol. 102(C), pages 125-131.
    6. Huh, Sung-Yoon & Lee, Jongsu & Shin, Jungwoo, 2015. "The economic value of South Korea׳s renewable energy policies (RPS, RFS, and RHO): A contingent valuation study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 64-72.
    7. 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.
    8. 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.
    9. Seul-Ye Lim & Ho-Young Kim & Seung-Hoon Yoo, 2016. "Public Willingness to Pay for Transforming Jogyesa Buddhist Temple in Seoul, Korea into a Cultural Tourism Resource," Sustainability, MDPI, vol. 8(9), pages 1-13, September.
    10. 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.
    11. 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.
    12. Jang, Jinyong & Lee, Jongsu & Yoo, Seung-Hoon, 2014. "The public׳s willingness to pay for securing a reliable natural gas supply in Korea," Energy Policy, Elsevier, vol. 69(C), pages 3-13.
    13. Kim, Hyo-Jin & Lee, Hye-Jeong & Yoo, Seung-Hoon, 2018. "Are South Korean people willing to pay for official development assistance for building renewable power plants in developing countries?," Energy Policy, Elsevier, vol. 118(C), pages 626-632.
    14. 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.
    15. 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.
    16. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    17. Song, Tae-Ho & Lim, Kyoung-Min & Yoo, Seung-Hoon, 2015. "Estimating the public’s value of implementing the CO2 emissions trading scheme in Korea," Energy Policy, Elsevier, vol. 83(C), pages 82-86.
    18. Hye-Jeong Lee & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "The Public Willingness to Pay for Reducing the Incidence of Hazardous Chemical Spill Accidents by Half in South Korea," Sustainability, MDPI, vol. 10(8), pages 1-15, July.
    19. Yoo, Seung-Hoon & Kwak, So-Yoon, 2009. "Willingness to pay for green electricity in Korea: A contingent valuation study," Energy Policy, Elsevier, vol. 37(12), pages 5408-5416, December.
    20. Kim, Ju-Hee & Lim, Seul-Ye & Yoo, Seung-Hoon, 2021. "Public preferences for introducing a power-to-heat system in South Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).

    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:eee:jrpoli:v:50:y:2016:i:c:p:66-74. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    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.