Investigating the Value of Parallel Pipeline Projects for Water Supply: A Contingent Valuation Study in South Korea

Abstract

Parallel pipeline projects can contribute to ensuring a safe and stable water supply and preventing or mitigating losses caused by water pipeline accidents. However, because these projects require a significant investment, feasibility tests are essential prior to their implementation. Considering the public nature of the water supply, the direct beneficiaries of the project and people from other regions can place value on such projects. Thus, this study estimates the value of parallel pipeline projects using the contingent valuation method (CVM) and the swing weighting technique. We constructed two contingent valuation surveys: one asking about the willingness to pay (WTP) for a parallel pipeline project within the respondent’s region and the other asking about the WTP for a project outside the region. The results show that the annual WTP per household for projects within and outside the region was 113,669 KRW (87.98 USD) and 5493 KRW (4.25 USD), respectively. These results indicate that the value perceived by people from outside the region should be considered. Additionally, the results from the swing weighting technique and WTP analysis show that the values that respondents generally consider important and those that can leverage the overall project value are distinct. This study’s results provide insights into the implementation of parallel pipeline projects in South Korea. Furthermore, this study’s analytical framework can be used for the valuation of other public infrastructure projects.