| Title |
Estimation of Domestic Water Supply Benefit Using Demand Function Approach |
| Authors |
여규동(Yeo, Kyu Dong) ; 이충성(Yi, Choong Sung) ; 김길호(Kim, Gil Ho) ; 이상원(Lee, Sang Won) |
| DOI |
https://doi.org/10.12652/Ksce.2012.32.4B.233 |
| Keywords |
생활용수 공급편익;수요함수;지불의사액;경제성분석 domestic water supply benefit;demand function;willingness-to-pay;economic analysis |
| Abstract |
In the past, the domestic water supply benefit of dam has been estimated by replacement dam cost approach. But it is logically inappropriate that we use the second priority dam as a replaced facility. Therefore, this study aims to suggest the estimation method of the domestic water supply benefit by using demand function, which is deduced from Willingness-To-Pay (WTP) of consumers. For this purpose, a survey concerning the marginal WTP is carried out according to the change of water use amount used, targeted 1,000 households in metropolitan area. And by using the marginal WPT, we estimated the demand function of a family. Finally, the monthly benefit equation is derived. The approach is demonstrated and discussed for an example, the Song-Li-Won dam project which is now renamed Young-Ju dam. From the example study, the total benefit for the durable years (50 years), was about 90 billion won. The method proposed herein is expected to be practical and useful in the economic analysis of the domestic water supply project including dam construction, as well as in further studies. |