Economic Valuation of Conservation of Inholdings in Protected Areas for the Institution of Payments for Ecosystem Services

Abstract

Ecosystem services, as public goods, are often undersupplied because private markets do not fully take into account the social cost of production. To alleviate the concern about this imbalance situation, payments for ecosystem services (PES) have emerged as a preferable alternative. While temples in Korea have owned a considerable part of the national parks, a PES approach can be used as a viable option to alleviate the conflicts among visitors, non-visitors, and temples. The purpose of this paper is to assess the economic values of ecosystem services provided by temple forests as a compensation mechanism. Using a contingent valuation method, an online survey was conducted with 1000 respondents. Study results showed that the economic benefits of the conservation of temple forests were estimated to be substantial, ranging from ₩5980 (US $5.42) to ₩7709 ($7.08) per household per year. The results also confirmed the effects of social factors such as individuals&rsquo ; trust in the government&rsquo ; s environmental policies and importance on the conservation of temples&rsquo ; cultural and religious values on the willingness to pay. With a growing interest in securing ecosystem services through a PES approach, estimating economic benefits of the conservation of inholdings in public protected areas will be a valuable piece of information as an important policy decision-making tool.