The research estimates citizen`s willingness-to-pay for improvement of tap water quality with using a contingent valuation method. A survey data of 1,003 samples throughout Ulsan city in 1999 is used in this study. The survey results show that the 67....
The research estimates citizen`s willingness-to-pay for improvement of tap water quality with using a contingent valuation method. A survey data of 1,003 samples throughout Ulsan city in 1999 is used in this study. The survey results show that the 67.1% of respondents have willingness to pay for improvement of tap water quality, and that total amount of willingness-to-pay for 10 years approximates 102,200∼177,200 million won. The Tobit model estimation result of a willingness-to-pay equation reveals that improvement of tap water quality brings about citizen`s benefit of 362,900 million won for 10 years through reducing consumption of alternative drinking water such as merchandising spring water. This amount is larger than the total cost of tap water quality improvement project for next 10 years in Ulsan city. Mean willingness-to-pay for improvement of tap water quality is about 470∼523 won per ton(Recent tap water sale price is 368 won per ton in 1999). When citizens pay 523 won per ton, the amount of citizen`s benefit will be at least 185,700 million won for next 10 years.