Presenter: Jenny Chen 陳瑩珍Instructor: Dr. Pi-Ying Teresa

HsuOctober 1, 2009

1

Lee, C., & Han, S. (2002). Estimating the use

and preservation values of national parks’

tourism resources using a contingent valuation

method. Tourism Management, 23(5), 531-540.

2

3

I. Introduction

II. Methodology

III. Results

IV. Conclusion

V. Personal Reflection

about 7 of every 10 Koreans visited national parks in South Korea in 1999

4

management of the parks requires:3700 won(approximately US $3)/visitor

current admission fee:1000won (US $0.83)/visitor

5

Budget cut

Increased admission

fees

Economic value

6

to estimate the use and preservation values of natural and/or cultural resources in five distinctive national parks

7

Study Sites

Mt. Soraksan

8

Study Sites

Mt. Pukhansan

9

Study Sites

Mt. Kayasan

10

Study Sites

Hallyo-Haesang

11

Study SitesTaean-Haean

12

Contingent valuation method (CVM)

measure the economic values of non-market goods

ascertain from respondents what they would be willing to pay under certain hypothetical market scenarios

(Lee, 1997)

13

Contingent valuation method (CVM)

is able to value trips with multiple purposes or multi-destinations

is the only approach to elicit existence benefits of environment amenity from both users and non-users

14

Dichotomous choice approach (DC)/Close-ended

easier for participants to make decisions

$ 300Yes

No

15

Open-ended Elicitation

Q: If……, how much are you willing to pay for …..?

A: _______.

16

$350

Pretest

Results

Nine offers were selected: 100, 200, 500, 1000, 2000, 5000, 10,000, 20,000, 50,000 won

17

Place Mt. Kayasan

WTP Maximum

Approach Open-ended

Payment vehicle admission fees (use value) tax (preservation value)

18

Survey methodface-to-face interviewon-site survey

Participants2300 visitors leaving the national parks

Durationpeak summer vacation period in 1999

Questionnaire

Part IV demographic characteristics

19

Part Imeasurements of recreation use and preservation values

Part II push and pull factors

Part III environmental attitudes

Use value question:

‘If the national park provides you with

opportunities for appreciating natural and/or

cultural resources, hiking, and resting, and it charges χ1 won (Korean currency) as an

admission fee per person, would you be

willing to pay for it?’

20

Preservation value question:

‘If it charges χ2 won per person per year as a

tax for preservation of the national park,

would you be willing to pay for it?’

21

υ(1, Y – A; s) + ε1 ≥ υ(0, Y; s) + ε0 (1)

υ : indirect utility

Y: income

A: offer (admission fee or tax)

s: other socio-economic characteristics

ε1 , ε0 : identically, independently distributed random

variables with zero means

22

∆υ = υ(1, Y – A; s) – υ(0, Y; s) + (ε1 – ε0) (2)

υ : indirect utility

Y: income

A: offer (admission fee or tax)

s: other socio-economic characteristics

ε1 , ε0 : identically, independently distributed random

variables with zero means

23

logit model

Pi = Fη(∆υ) =

= (3)

Pi: probability that the individual will accept an offer (A)

Fη(∙): cumulative distribution function of a standard logistic variate

β , γ, θ : coefficients to be estimated24

1

1 + exp(–∆υ)

1

1 + exp{–(α – βA +γY + θS)}

25

Maximum likelihood (ML)

Linear-logit model

Expected value of WTP

E(WTP) = Fπ (∆υ) dA

= (α* + βA) dA (4)

E(WTP): expected value of WTP

α*: adjusted intercept (add socio-economic term)

26

ʃMax. A

0

ʃMax. A

0

27

use value

preservation value

28

29

accessibility

preservation value

use value

30

the use value of each national park is far greater than the current admission fees of 1000

won/visitor and maintenance costs of 3700 won/visitor

increase admission fees to maintain the quality of the natural environment

31

resources from the national parks are found to provide considerable use and preservation value for citizens

Korean government should continue to provide money for parks management in order to maintain citizens’ welfare

five national parks were thoughtfully selected

reasons for applying CVM were explained

disadvantages of using the dichotomous choice (DC) approach were not included

32

strategic bias may be generated

interview method was inconsistent

five national parks does not seem enough to

show a strong relationship between location

and the use and preservation values

33

Thank you for your attention!

34