Benefit Transfer for Water Management along the Han River in South Korea Using Meta-Regression Analysis

Hio-Jung Shin,Min-Woo Jo,John Tenhunen,Chul-Hyun Jeon,Trung Nguyen,Hyun Kim

doi:10.3390/w8110492

Abstract

This study estimates the magnitude of economic benefits that are justified in transfer from downstream users to upstream users for the use of the Han River in South Korea in terms of foregone economic benefits by regulations. Based on the existing non-market valuation studies associated with water management issues in South Korea from 1997 to 2014, a meta-regression analysis was performed to provide alternatives for regional benefit sharing of water resource use. The benefits from the use of water resource along the Han River are estimated on average to be KRW 7,728 (US $7.7) per household per month. The total net benefits are estimated to be about KRW 449 billion (US $449 million) per year. Following the principle regarding equal distribution of benefits, the stakeholders who received more net benefits than others should return their extra net benefits to other stakeholders through a policy tool such as tradable development rights. The results of our study provide economic indicators useful for the establishment of common resource policy and to consider stakeholders’ rights within the framework of regional benefits. This study also provides practical solutions that could be used as a valid policy instrument to mediate the conflicts and disputes associated with water resource use.

Highlights

According to the principles suggested by international organizations such as the WorldCommission on Dams (WCD), the Food and Agriculture Organization (FAO), and the United Nations (UN), benefits from water resource use should be distributed among river basin stakeholders because water along the river should be considered as their common goods, while its costs should be equitably shared among them [1]
A meta-regression analysis has been mainly used as a method for transferring the benefit from the existing sites to new sites, this method is applicable to our study since the objective of our study is to present credible evidence all relevant stakeholders can agree with based on involving all previous studies independently conducted along the Han River Basin and other similar studies related to water management in South Korea
Except for a few variables, most of the parameters are statistically significant at 10% level and their signs are consistent with the results of previous benefit transfer literature

Summary

Introduction

Commission on Dams (WCD), the Food and Agriculture Organization (FAO), and the United Nations (UN), benefits from water resource use should be distributed among river basin stakeholders because water along the river should be considered as their common goods, while its costs should be equitably shared among them [1] These principles potentially indicate that downstream users (DU). Water 2016, 8, 492 to protect water quality and to maintain adequate water yield for MU and DU, UU lose their opportunities for potential economic development in terms of using water resources In such cases, some measures could be possibly taken in order to achieve equal distribution of benefits from the use of water resources among stakeholders and for the sake of partial compensation for foregone economic benefits due to restriction in upstream economic activities. DU and/or MU, who benefit more from the water use, should return their extra net benefits to MU and/or UU who benefit less as a consequence of regulations related to management of water resources

Objectives

Methods

Results

Conclusion