Abstract
This study estimates the economic value of the Daecheong Dam for the public function of responding to climate change. It examines the moderating effect of climate change perceptions on value estimates by applying choice experiments (CE). The study specifies three dam function attributes—drought management (DM), flood control (FC), and water quality monitoring (WM)—subdivided into three levels to improve the existing conditions. Survey data from 603 households living in Daejeon, Chungbuk, and Chungnam have been collected to perform the CE. Subsequently, two clusters—high-involvement and low-involvement groups—have been extracted, based on the climate change perception index. The main results of comparing the marginal willingness-to-pay between the two clusters are as follows. The attributes and price variable significantly affected the choice probability to benefit from improvements in the rational signs of the coefficients. This does not violate the independence of the irrelevant alternatives assumption. The improvement values of high-involvement and low-involvement groups are estimated as KRW 21,570 and KRW 14,572 a year per household, respectively. Both show the same value intensities in the order of WM, DM, and FC.
Highlights
Luis GarroteGlobal climate change has intensified precipitation irregularity, lake and river surface decline, and water quality deterioration [1,2,3], which in turn has hampered water management efficiency [4,5]
The results demonstrated the alternative hypothesis that the collected data was heterogeneous; it was rejected at the 5% significance level for gender (p = 0.980), age (p = 0.950), marital status (p = 0.694), education (p = 0.061), occupation (p = 0.497), residence area (p = 0.994), and income (p = 0.051)
The purpose of this study was to estimate the economic value of the Daecheong Dam for the public function of responding to climate change
Summary
Luis GarroteGlobal climate change has intensified precipitation irregularity, lake and river surface decline, and water quality deterioration [1,2,3], which in turn has hampered water management efficiency [4,5]. Since water supply and demand management in response to climate change has become a national problem, a variety of measures have been proposed for effective water resource management. This includes restructuring the main role of hydroelectric dams to supply water during drought, and flood defenses [11]. Efficient dam operation plans are urgently required to manage drought, flood stress, and water quality. Multi-purpose dams benefit local people, directly and indirectly, by providing domestic and industrial water, electricity generation, and ecotourism as well as drought relief and flood prevention [12,13]. The fact that the reservoir water condition is highly relevant to drinking water quality and recreational value for local people has added significance [14,15]
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