Economic feasibility of environment-friendly farmland use policy for water quality improvement
Vol 8, Issue 9, 2024
VIEWS - 96 (Abstract) 50 (PDF)
Abstract
This study examines the economic feasibility of the environment-friendly farmland use policy to improve water quality. Conventional highland farming, polluting the Han River basin in South Korea, can be converted into environment-friendly farming through land acquisition or application of pesticide-free or organic farming practices. We estimate the welfare measures of improvement in water quality and the costs of policy implementation for economic analysis. To estimate the economic benefit of improvement in water quality experienced by the residents residing in mid-and-downstream areas of the Han River, the choice experiment was employed with a pivot-style experimental design approach. In the empirical analysis, we converted the household perception for water quality grades into scientific water quality measures using Water Quality Standard to estimate the value of changes in water quality. To analyze the costs required to convert conventional highland farmlands into environment-friendly farmlands, we estimated the relevant cost of land acquisition and the subsidy necessary for farm income loss for organic agricultural practice. We find that the agri-environmental policy is economically viable, which suggests that converting conventional highland farming into environment-friendly farming would make the improvement in water quality visible.
Keywords
Full Text:
PDFReferences
Ben-Akiva., Moshe, E. (2001) Extended discrete choice models: integrated framework, flexible error structures, and latent variables. Massachusetts Institute of Technology.
Bockstael, N. E., McConnell, K. E. (2007). Environmental and Resource Valuation with Revealed Preferences: A Theoretical Guide to Empirical Models. Springer Science & Business Media.
Cho, J. H. (2018). Pollutants Removal Efficiency of Rainfall-runoff from Dense Highland Field Areas in Multistage Sedimentation Basins—Focused on Jaun Area in Upstream Watershed of Lake Soyang. Journal of Environmental Impact Assessment, 27, 170–80.
Choi, I. C., Kim, H. N., Shin, H. J., et al. (2016). Willingness to Pay for a Highland Agricultural Restriction Policy to Improve Water Quality in South Korea: Correcting Anomalous Preference in Contingent Valuation Method. Water, 8(11), 547. https://doi.org/10.3390/w8110547
Gordon, L. J., Finlayson, C. M., & Falkenmark, M. (2010). Managing water in agriculture for food production and other ecosystem services. Agricultural Water Management, 97(4), 512–519. https://doi.org/10.1016/j.agwat.2009.03.017
Grafton, Q., Adamowicz, W., Dupont, D., et al. (2008) The economics of the environment and natural resources. John Wiley & Sons, 520.
Grizzetti, B., Lanzanova, D., Liquete, C., et al. (2016). Assessing water ecosystem services for water resource management. Environmental Science & Policy, 61, 194–203. https://doi.org/10.1016/j.envsci.2016.04.008
Han, Y. H. (2009) Effect of the rivers in Gangwon Province on the water quality of Paldang Lake. Chuncheon: Research Institution for Gangwon.
Hampson, D. I., Ferrini, S., & Turner, R. K. (2021). Assessing subjective preferences for river quality improvements: combining Q-methodology and choice experiment data. Journal of Environmental Economics and Policy, 11(1), 56–74. https://doi.org/10.1080/21606544.2021.1879682
Hess, S., & Rose, J. M. (2008). Should Reference Alternatives in Pivot Design SC Surveys be Treated Differently? Environmental and Resource Economics, 42(3), 297–317. https://doi.org/10.1007/s10640-008-9244-6
Hong, E., Kyeongjae L., & Hyeokjoon, K. (2020). Water quality monitoring to examine the reason for water pollution in Kangwon-do: A case study in the Doam Lake Watershed. In: Proceedings of KSAE Annual Conference; The Korean Society of Agricultural Engineer.
Jeon, M. S., & Kang, J. W. (2010) Management and agricultural development measures in the watershed of soyang dam: Focused on haean-myeon, Yanggu-gun. Research Institution for Gangwon: Chuncheon.
Jun, M. S., Kang, J. W. (2010). Muddy water management and agricultural development measures in the watershed of Soyang dam: Focused on Haean-myeon, Yanggu-gun. Chuncheon. Research Institution for Gangwon.
Khan, I., & Zhao, M. (2019). Water resource management and public preferences for water ecosystem services: A choice experiment approach for inland river basin management. Science of The Total Environment, 646, 821–831. https://doi.org/10.1016/j.scitotenv.2018.07.339
Kim, C. G., Jeong, H. K., Lim, Y. A., et al. (2016). Fostering Environment-Friendly Agriculture and Strengthening Management of Agri-Environmental Resources. Korea Rural Economic Institute.
Kim, C. S., Lee, H. D., Son, K. A., et al. (2019). Occurrence of Pesticide Residues in Han River Basin in 2012 and 2014. Korean Journal of Environmental Agriculture, 38(4), 338–351. https://doi.org/10.5338/kjea.2019.38.4.45
Kim, H. N., Boxall, P. C., & Adamowicz, W. L. (2016). Analysis of the impact of water quality changes on residential property prices. Water Resources and Economics, 16, 1–14. https://doi.org/10.1016/j.wre.2016.11.003
Loomis, J., Kent, P., Strange, L., et al. (2000). Measuring the total economic value of restoring ecosystem services in an impaired river basin: results from a contingent valuation survey. Ecological Economics, 33(1), 103–117. https://doi.org/10.1016/S0921-8009(99)00131-7
Larned, S., Snelder, T., Unwin, M., et al. (2016). Water quality in New Zealand rivers: current state and trends. New Zealand Journal of Marine and Freshwater Research, 50(3), 389–417. https://doi.org/10.1080/00288330.2016.1150309
Lim, J., Minhwan, S., Nayeong, Y., Eunmi, H. (2019). Application of best management practices for reducing non-point source pollution in upland fields. In: Proceedings of KSAE Annual Conference: The Korean Society of Agricultural Engineer.
Melland, A. R., Fenton, O., & Jordan, P. (2018). Effects of agricultural land management changes on surface water quality: A review of meso-scale catchment research. Environmental Science & Policy, 84, 19–25. https://doi.org/10.1016/j.envsci.2018.02.011
Shin, J. Y., Lee, S. I., Shin, M. H., et al. (2015). Characteristics of suspended solids export from alpine field during rainfall event. In: Proceedings of the Korean Society on Water Environment Korean Society of Water and Wastewater joint spring conference. pp. 493–494.
Shin, Y. K., Kim, C. G., Kim, T. Y., Joo, J. H. (2005). A Basic study for environmentally friendly reorganization of highland agriculture. Seoul: Korea Rural Economic Institute.
Tait, P., Baskaran, R., Cullen, R., et al. (2012). Nonmarket valuation of water quality: Addressing spatially heterogeneous preferences using GIS and a random parameter logit model. Ecological Economics, 75, 15–21. https://doi.org/10.1016/j.ecolecon.2011.12.009
Walker, J. L. (2001). Extended discrete choice models: integrated framework, flexible error structures, and latent variables. Dept. of Civil and Environmental Engineering, Massachusetts Institute of Technology.
DOI: https://doi.org/10.24294/jipd.v8i9.7692
Refbacks
- There are currently no refbacks.
Copyright (c) 2024 Hyun No Kim
License URL: https://creativecommons.org/licenses/by/4.0/
This site is licensed under a Creative Commons Attribution 4.0 International License.