Estimation of economic benefits of biodegradable fishing net by using contingent valuation method (CVM)

Abstract

The main purpose of this study is to estimate willingness to pay (WTP) by the general publics, assuming thatthey pay tax or charge for protecting marine living resources and environment through developing andsupplying biodegradable fishing nets. This study employed a contingent valuation method (CVM) which isan econometric method. The survey was conducted by using both double-bounded dichotomous choice andopen-ended survey. Tobit model was used for the analysis. The variables included concerns about marineenvironment and fishing net discarded, sex, age profile, number of family members, educational level andpersonal disposable income. Annual average WTP per family for the biodegradable fishing net developmentand supply was estimated at 5,294 won and national WTP amounted to some 84.2 billion won. This includesboth of use and non-use value of biodegradable fishing nets.Keywords: Contingent valuation method (CVM), Biodegradable fishing net, Conservation, Ecosystem,Tobit model