Monetary valuation of air quality improvement with the stated preference technique: A multi-pollutant perspective.

Air pollution is an important global issue, and governments are making efforts to reduce air pollutant emissions. The elaborate calculation of the social costs of air pollution is essential for justifying the substantial public expenditure on air pollution control policies. This study aims to derive the monetary value of reducing different kinds of air pollutants through the public's willingness to pay (WTP). A choice experiment survey is conducted to examine the public perception of air quality improvement, and the collected stated preference data are analysed with the hierarchical Bayesian logit model. The analysis results show that the public valuation of the emission reduction differs for individual pollutants. On average, the monetary value of one ton of emission reduction follows the order of PM2.5, PM10, SOx, TSP, NOx, and VOC. Based on the elicited WTP, the economic feasibility of the two air pollutant reduction plans of the South Korean Government is assessed. The benefit-to-cost ratio of the plans is 0.61 and 0.66, respectively, based on the mean WTP, indicating that they are not economically feasible at the moment. Implications for the efficient budget allocation of air pollution control policies are provided based on the results.

Social benefits of improving water infrastructure in South Korea: upgrading sewage treatment plants.

A sewage treatment plant is considered an undesirable facility because of public concerns about odor, hygiene, and lowered house prices in the neighborhood. In South Korea, many aging sewage treatment plants need to be upgraded because they show inadequate performance on the removal of major pollutants. However, issues involved in such upgrades include social conflicts between the local government and residents, and economic feasibility. Examinations of social acceptability that include economic analyses are needed in order to fulfill social demand for upgrading the sewage treatment plants while simultaneously guaranteeing efficiency and minimizing social costs. This study investigates the social benefits of expanding and modernizing sewage treatment plants in South Korea using the contingent valuation method. Results show that Korean households, on average, are willing to pay 36,340 KRW (33.25 USD) per year for upgrading sewage treatment plants. About 47.73% of the project costs can be covered by the social benefits the Korean households enjoy. This study suggests that the Korean government needs to consider estimated social benefits in determining the scale and timeline of upgrade projects. The results of this study may help with stable implementation of upgrade projects for sewage treatment plants.