Assessing the benefits of the greenhouse gas emission reduction policy: A pilot case study of Korea

Reducing greenhouse gas (GHG) emissions to avert or slow climate change has become an increasingly important policy issue in developing countries such as Korea, as well as in developed countries. This paper uses the willingness to pay survey technique to assess the benefits that would ensue from a proposed GHG emissions reduction policy. It aims to provide at least a preliminary evaluation of the policy, using Korea as a specific case study. Respondents overall accepted the contingent market and were on average willing to contribute a significant amount toward the GHG emissions reduction policy. This willingness varies according to respondents' individual characteristics and environmental concerns. Finally, this study discusses the importance of including the climate change problem in cost-benefit analysis and presents the policy implications of the results.