The Public Willingness to Pay for Reducing the Incidence of Hazardous Chemical Spill Accidents by Half in South Korea

Hye-Jeong Lee,Seung-Hoon Yoo,Hyo-Jin Kim

doi:10.3390/su10082673

Hye-Jeong Lee, Seung-Hoon Yoo + Show 1 more

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https://doi.org/10.3390/su10082673

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Abstract

Hazardous chemical spill (HCS) accidents, which occur due to careless workers, transport accidents, etc., can be harmful to humans. Recently, an average of 96 cases of HCS accidents have taken place in South Korea annually. As a result, the government is trying to reduce the incidence of HCS accidents by 50%. Government officials are seeking information about the value that the enforcement of the reduction plan will bring for the public. This knowledge will help government officials decide whether to implement the reduction plan. This article seeks to acquire information about the public willingness to pay (WTP) for the reduction plan, employing the contingent valuation (CV) technique. For this purpose, a total of 1000 households living in South Korea participated in the CV survey in 2017. The data on the WTP were gathered using a dichotomous choice question and analyzed using the spike model. Forty-five percent of the respondents were willing to accept an increase in income taxes to carry out the reduction plan. The mean household WTP estimate was obtained as KRW 3830 (USD 3.41) per annum. The national value expanded from the sample to the population is worth KRW 74.8 billion (USD 66.6 million) per year. This value implies the public value of the reduction plan and can be applied in policy analysis and decision-making concerning the reduction of the incidence of HCS accidents.

Highlights

Depending on the increase in the production and distribution of chemicals, governments around the world have strived to prevent hazardous chemical spill accidents by strengthening regulations on chemicals
The validity and accuracy of a contingent valuation (CV) study can be enhanced if people are familiar with the good to be valued; professional interviewers are used and other conventions suggested by the National Oceanic and Atmospheric Administration (NOAA) Panel are followed
Hazardous chemical spill (HCS) accidents are characterized by explosive eruptions and violent reactions, resulting in significant damage within a short time, both in terms of injury and property damage

Summary

Introduction

Depending on the increase in the production and distribution of chemicals, governments around the world have strived to prevent hazardous chemical spill accidents by strengthening regulations on chemicals. The European Union (EU) has a new chemical substance management system called Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) [1]. The United States of America has the Toxic Substances Control Act (TSCA) and the Pollution Prevention Act. Under the TSCA and the Pollution Prevention Act, the United States Environmental Protection Agency (EPA) evaluates potential risks from new and existing chemicals and finds ways to prevent or reduce pollution before it affects the environment [2]. Japan has the Chemical Substances Control Law (CSCL). The CSCL controls both new and existing substances. In the case of Korea, there is the Korea REACH and the Chemical Control Act. The Korea REACH is similar to the EU REACH, and the Chemical Control Act controls hazardous substances and response to chemical accidents [4,5]

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