Assessing the Benefits of Water Quality Improvements Using Contingent Valuation Method: Case Study of the Kumgang Area

This paper is concerned with the assessment of benefits from water quality improvements. The contingent valuation method (CVM) is employed to directly measure the value of the project for the improvement of the water pollution in the Kumgang area. The perceived value of the improved water quality is investigated by using questionnaires to those concerned living near water-polluted area. The questionnaire includes such questions as the amount to willingly pay, the motivation to pay, the reasons of rejecting the payment, and some socio-economic data. The results of the survey show that (1) non-use value of the environmental goods is perceived to be more important than use-value of the environmental goods; (2) "willingness to pay" for the improved water quality varies according to the degree of educational level. income level and ages; (3) the resistance to pay for the project comes from the "polluter's pay principle".