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Measuring the Economic Value of the Negative Externality of Livestock Malodor in South Korea

Author

Listed:
  • Kwideok Han

    (Department of Institutional Research and Analytics, Oklahoma State University, 203 PIO Building, Stillwater, OK 74078, USA)

  • Jeffrey Vitale

    (Department of Agricultural Economics, Oklahoma State University, 418 Ag Hall, Stillwater, OK 74078, USA)

  • Yong-Geon Lee

    (Department of Environment and Resources Research, Korea Rural Economic Institute, 601 Bitgaram-ro, Naju-si 58217, Korea)

  • Inbae Ji

    (Department of Food Industrial Management, Dongguk University, 30 Pildong-ro 1-gil, Jung-gu, Seoul 04620, Korea)

Abstract

The South Korean livestock industry has increased in scale and production, generating positive impacts on the national economy. However, livestock externalities, primarily malodor, have subsequently led to increased conflicts between producers and affected communities. This study estimated Korean households’ willingness-to-pay (WTP) for government subsidies to help address livestock malodor using a contingent valuation method (CVM) derived from a double-bounded dichotomous choice model. The annual average household WTP was estimated at 29,206 Korean won (KRW) (USD 25). This was slightly higher than the respondents’ self-reported average amount of KRW 25,457 (USD 22). The estimated economic value nationally is KRW 628 billion (USD 546 million) annually, for a total of KRW 3.14 trillion (USD 2.73 billion) over a proposed five-year period. The public’s estimated WTP can be leveraged to improve livestock management practices, more efficient waste disposal techniques, and improved husbandry methods to address conflicts between producers and surrounding communities.

Suggested Citation

  • Kwideok Han & Jeffrey Vitale & Yong-Geon Lee & Inbae Ji, 2022. "Measuring the Economic Value of the Negative Externality of Livestock Malodor in South Korea," IJERPH, MDPI, vol. 19(15), pages 1-13, August.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:15:p:9475-:d:878470
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    References listed on IDEAS

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