Accessing the economic value of night view of bridge using contingent valuation method: the case of South Korea’s Han-River bridge

Abstract

Purpose – The purpose of this paper is to estimate an individual’s probability of preservation of the night view of Han-River bridge tax using the contingent valuation method (CVM) and to present the effects of 4Es on experience economy theory. Design/methodology/approach – The on-site survey was conducted in the 11 district Han-River parks: Gwangnaru, Jamsil, Ttukseom, Jamwon, Banpo, Yeechon, Yeouido, Mangwon, Nanji, Ganseo and Yanghwa district, including 24 bridges such as Banpo, Olympic bridge during 8-9 pm around the lighting and 9-10 pm peak time of lighting. Findings – Truncated mean willingness-to-pay indicates that the economic value of the night view of Han-River bridge is 49,575 won (about USA $50) per household, which implies the significance of the preservation value of the night view. Research limitations/implications – This study sets a hypothetical market, and there are limitations on hypothetical bias of the dichotomous choice CVM. For the future study, a survey with a specific real payment vehicle in an attempt to reduce hypothetical bias can be a tool for the prevention of the overestimation. Practical implications – Through the study, Seoul city has to invest aggressively on the night view landscape business of Han-River bridge, which can become a landmark and has lots of attraction for tourists. As this study’s core aim was to justify the economic value of the night view of the Han-River bridges, the estimated amount strongly supports the lighting business of the Han-River bridge. Originality/value – The results of this research may help policy-makers of Han-River to establish practical decisions as to whether improving and preserving the Han-River’s night view lighting business are worth the value.

Willingness to Pay for Digital Government Services in Egypt: A Contingent Valuation Analysis for Electricity Meter Case

“…But surprisingly, the result of this study indicated that age has no significant effect on WTP or WTP amount. Few studies agreed with this result like (Loomis et al, 1996), while many other studies in the literature revealed that age has a significant impact on WTP like (Nam et al, 2014;Yang and Solgaard, 2015;Yung and Chan 2015;Sriwaranun et al, 2015). They believed that the older the respondents are, the higher is the probability for their WTP and WTP amount.…”

“…Income level has a significant effect on both WTP and WTP amount. While few studies referred to income as an insignificant variable regarding WTP (Loomis et al, 1996;Yang, and Solgaard, 2015), many others proved that income is one of the most significant variables affecting respondents' WTP and WTP amount (Otegbulu, 2011;Nam et al, 2014;Gao et al, 2014;Sriwaranun et al, 2015). This means that the higher the income level, the higher the probability for respondents to have a WTP for the service in question.…”

“…The results showed that it has an insignificant effect on both WTP and WTP amount. Though past experience -especially if positive-tends to have a significant impact on WTP according to Sriwaranun et al (2015) and Nam et al (2014).…”

“…The hypothetical nature of CVM gives flexibility in information gathering, however, it also raises some scepticism regarding its accuracy. Despite the limitations of CVM, previous literature concludes that well-designed CVM surveys can provide correct and valuable information about individuals WTP (Nam et al, 2014;Yung, and Chan, 2015).…”

“…But, despite these limitations and criticism, CVM was seen as an effective tool to measure the WTP and to assess the monetary value of non-market goods or services. Yung, and Chan, 2015;and Nam et al (2014) concluded that a well-designed CVM survey can provide valuable information about individuals' WTP. Nevertheless, it is very vital to consider the above-mentioned limitations when designing the survey and attempting to minimize these errors.…”