Korean coastal wetlands are identified as one of the most important wetlands in the world. About 30% of Korean wetlands, however, have been converted into landfill and reclamation since 1980. Even remaining ones are under great development pressure fo...
Korean coastal wetlands are identified as one of the most important wetlands in the world. About 30% of Korean wetlands, however, have been converted into landfill and reclamation since 1980. Even remaining ones are under great development pressure for agricultural, industrial, and other land uses in Korea. A main reason is because non-use values for coastal wetlands are often neglected in the benefit-cost analysis. The paper is to estimate the conservation value of the coastal wetlands around the Youngsan River, an area of dispute between development and conservation of coastal wetlands, using the contingent valuation method. The Hanemann`s conventional double-bounded dichotomous choice model and the Kristrom`s spike model are compared to deal with no responses of 42.1% in our sample. As a result, the information at zero drastically decreased the standard error of the mean and made the confidence interval derived by Monte Carlo simulation technique fairly tight in this application, with the spike model rather than conventional double-bounded dichotomous choice model. Further analysis involving an extension of the original spike model using only single-bounded data to modelling double-bounded data with zero observations is also made. Overall, respondents answer that they would be willing to pay 3,904 Korean won per month per household for conserving the wetlands under study. Provided that our sample is broadly representative of the Seoul`s population, an estimate of the annual aggregated conservation value of the coastal wetlands for all Seoul households is approximately 46.9 billion won even in the conservative Scenario.