Work

Beyond aquifer boundaries: unveiling the multi-dimensional value of groundwater management in Jeju, Korea

Year: 2024

Type: article

Abstract: ABSTRACT This paper presents a comprehensive analysis of groundwater valuation in Jeju Island, Korea, which relies heavily on groundwater resources. The research addresses the limitations of conventional valuation methodologies that often undervalue groundwater management and ignore spatial heterogeneity. We employ three non-market valuation aggregation methods: local benefit, national benefit, and a combined heterogeneous benefit approach. The heterogeneous benefit approach divides the population into groups based on their distinct groundwater valuations and then consolidates their willingness to pay. Using a contingent valuation method, we analyze survey data from 542 respondents in Jeju and 1,000 respondents nationwide to capture the comprehensive value of improving groundwater quality, considering both local and non-local dependencies. Results show that national benefits exceed local benefits by a factor of 21.4, and this disparity increases to 21.6 when spatial heterogeneity is included. These findings highlight a significant underestimation in previous studies focusing solely on local beneficiaries. Our approach enhances understanding of the varied values attributed to groundwater by different populations, providing crucial insights for sustainable water resource management

Source: Water Policy

DOI: 10.2166/wp.2024.135

Authors: Chanhee Lee, Jungkyu Park

Institutions: The Seoul Institute, Korea Institute of Geoscience and Mineral Resources

Language: English

Topic: Economic and Environmental Valuation

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Clean water and sanitation

Open Access status: diamond

Funders: Korea Institute of Geoscience and Mineral Resources, Ministry of Science and ICT, South Korea