Measuring the Economic Benefits of the Ozone Pollution Control Policy in Seoul: Results of a Contingent Valuation Survey

Abstract

Controlling ozone pollution has become an increasingly important policy issue in developing countries such as Korea, as well as in developed countries. One response to this concern is to assess the benefits that would ensue from a proposed ozone pollution control policy. This paper applies a contingent valuation method to obtain at least a preliminary evaluation of the benefits of a policy, using a specific case study of Seoul, Korea. Respondents overall accepted the contingent market and were willing to contribute a significant amount, on average, per household. This willingness varies according to individual characteristics. The study also discusses the importance of including the ozone pollution control problem in a cost-benefit analysis and presents the policy implications of the results.