Revealed Preference and Effectiveness of Public Investment in Ecological River Restoration Projects: An Application of the Count Data Model

Ecological river restoration projects aim to revitalize healthy and self-sustaining river systems that can provide irreplaceable benefits to human society. Cheonggyecheon and Anyangcheon are two sites of recent river restoration projects in Korea. To assess the economic value of two rivers, count da...

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Bibliographic Details
Published in:Sustainability 2016-04, Vol.8 (4), p.353
Main Authors: Lee, Yoon, Kim, Hwansuk, Hong, Yongsuk
Format: Article
Language:English
Subjects:
Creeks & streams
Data models
Demand curves
Environmental conditions
Environmental engineering
Quality improvement
Recreation
Rivers
Success
Sustainability
Water quality
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Summary:Ecological river restoration projects aim to revitalize healthy and self-sustaining river systems that can provide irreplaceable benefits to human society. Cheonggyecheon and Anyangcheon are two sites of recent river restoration projects in Korea. To assess the economic value of two rivers, count data was collected to conduct the individual travel cost method (ITCM) in this study. Five statistical models such as the Poisson, the negative binomial, the zero-truncated Poisson, the negative binomial, and negative binomial model adjusted for both truncation and endogenous stratification were used in the analysis due to the nature of count data. Empirical results showed that regressors were statistically significant and corresponded to conventional consumer theory. Since collected count data indicated over-dispersion and endogenous stratification, the adjusted Negative Binomial was selected as an optimal model to analyze the recreational value of Cheonggyecheon and Anyangcheon. Estimates of the annual economic value of two river restoration projects were approximately US $170.1 million and US $50.5 million, respectively.
ISSN:2071-1050
2071-1050
DOI:10.3390/su8040353