Estimation of Willingness-to-pay for Enhanced Earthquake Early Warning System

Abstract

This study estimated the willingness to pay (WTP) to enhance an earthquake early warning system (EEWS). Korea's need to prepare for earthquake damage, such as large-scale earthquakes accompanied by significant damage that affected Gyeongju in 2016 and Pohang in 2017, has come. The faster an earthquake warning is delivered, the more advantageous it is to secure an evacuation time; thus, an EEWS is a vital preparedness policy to minimize earthquake damage. As a result of estimating the WTP for the enhanced EEWS using the contingent valuation method (CVM) in this paper, whether the respondent has experienced an earthquake and considered the EEWS an effective earthquake preparedness countermeasure statistically affects their WTP. It was a primary variable with a significant impact, and the total WTP for enhanced domestic EEWS was estimated at about KRW 1.2 trillion. The scale of benefits of enhanced EEWS evaluated in this study can provide important information in establishing policies related to earthquake disaster-related damage prevention.