Abstract

This study aims to analyze consumer recognition of the impact of extreme weather events on the Korean agricultural sector,BRand the social demand for government countermeasures addressing extreme weather events. For this study, food buyers who buy food mainly in their household were asked about their recognition of and how to cope with extreme weather events through a mail questionnaire survey, and the contingent valuation method was used to analyze their marginal willingness to pay for a policy to respond to extreme weather events. In the analysis, 80.2% of respondents said lower productivity and quality of agri-livestock products has a negative impact on consumption, and that they would reduce consumption (62.9%) or purchase substitutes (30.7%) when the prices of agri-livestock products rise while the quality worsens. This implies that lower productivity and quality of agri-livestock products has a negative impact on consumer welfare. While the analysis of marginal willingness to pay showed annual taxes have a negative impact on marginal willingness to pay, the positive impact of the prospect of incomes and extreme weather events on the marginal willingness to pay was statistically significant. The total willingness to pay to respond to extreme weather events in the agricultural sector measured about 860 billion won, which is greater than the current budget used for this purpose. This analysis suggests that greater awareness of the effects of extreme weather events on the agricultural sector is needed among consumers, so that they will view policies and costs related to addressing these issues more positively. The social demand for addressing extreme weather events related to climate change in the agricultural sector can be increased by educating the public about the frequency and intensity of extreme weather events.

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