Water Quality Measurement: What Makes ‘Willingness To Pay’ Different?

Abstract

Previous contingent valuation studies have paid attention to individual socioeconomic variables that affect a willingness to pay (WTP) for the quality of environmental assets. Focusing on the upstream vs. downstream regional conflict of the Nakdong River area in Korea, this study examined whether, how, and why people living in different regions have different levels of water quality measurement. This study employed contingent valuation method by asking people how much they were willing to pay for water quality. This study concluded that the regional factors were stronger than individual factors in explaining the measures of WTP for water quality. Different interests vested in each region proved a major determinant in valuing water quality. Specifically, the upstream people with regional concern for economic development had much higher willingness to pay for water quality than had downstream people, who had regional concern for environmental protection.