The purpose of this paper is to attempt the economic valuation of Hwangsung park and Hyungsan river in Kyongju, in case of an ecological development as an alternative development strategy. A dichotomous choice contingent valuation method was employed ...
The purpose of this paper is to attempt the economic valuation of Hwangsung park and Hyungsan river in Kyongju, in case of an ecological development as an alternative development strategy. A dichotomous choice contingent valuation method was employed to estimate the median, truncated, and mean willingness-to-pay(WTP), contingent on a hypothetical scenario of the ecological development. The empirical results show that the economic value of Hwangsung park in the scenario of the ecological development, was estimated at 2,191 Won, 7,429 Won, and 11,039 Won per visitor in terms of the median WTP, the truncated WTP, and the mean WTP, respectively. The economic value of Hyungsan river in the scenario of the ecological development, was estimated at 9,234 Won, 9,759 Won, and 15,963 Won per visitor in terms of the median, truncated, and mean WTP, respectively. The mean WTP appeared to generate the greatest economic value, while the median WTP produced the least economic value.
The findings suggest that the local government should ecologically develop the two natural resources as compared to other alternatives since significant economic values exist.