Analysis on the Effect of abnormal climate on Willingness to Pay for Urban Heat Island Mitigation Focused on Street Tree Planting Policy in Seoul, Korea

Abstract

The paper attempts to analyze the effect of climate change on individual’s willingness to pay for urban heat island mitigation. In this paper, climate change represents change between heatwave and rainy season. Utilizing the contingent valuation method, each willingness to pay for street tree planting policy under two climate conditions is estimated. In order to specify the effect of climate change on willingness to pay, a dummy variable for two climate conditions is included as an explanatory variable for willingness to pay. Then, the statistical difference between the average willingness to pay under each condition is examined. The paper shows that the rainy season had a statistically significant negative effect on the willingness to pay for urban heat island mitigation. Also, it reveals that there is a statistical difference in the willingness to pay between heatwave and rainy season conditions. Finally, this paper suggests a policy direction for urban heat island mitigation based on the results obtained.