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A Study on the Method of Estimating the Benefits of Economic Feasibility Analyses of Park Construction Projects Using the Choice Experiment

Dong-Guen KimㆍYoung- Hyun ShinㆍHyo-Sub SimㆍHan-Jun Kim

Economic feasibility analysis for park construction projects has not yet been established, and therefore the rate of economic feasibility analysis is very low compared to other facilities. To evaluate the economic value of the park, it is necessary to consider both the value of use and the value of non-use at the same time. Unfortunately, the contingent valuation method (CVM) which is the most frequently used in preliminary feasibility studies requires a long survey period and is expensive.

On the other hand, the choice experiment, which measures the value of various attributes of a target good or service through the selection of a virtual attribute combination that can maximize one's utility, is suitable for investment review schedules and budgets and has been used to estimate the value of a natural environment or new business. This study intends to develop a methodology for estimating the benefits for economic feasibility analyses of park construction projects in Seoul using the choice experiment.

After estimating the marginal payment intention for each attribute of the entire Seoul Metropolitan Government, it was found that the willingness to pay for neighborhood urban parks was slightly higher than that of metropolitan urban parks. After estimating the amount of marginal payment by attributes in the five major regions, our results showed that the significance was in the green area and park facility area only in the southeastern region, and the result values for each region were derived heterogeneously. In addition, the willingness to pay by attribute differed by region.