Estimating the Economic Value of Change in Ecosystem Habitat Quality in South Korea Using an Integrated Environmental and Economic Analysis

Abstract

Jeju Island is one of the most prominent ecotourism destinations in South Korea and has steadily been the subject of land-use development. In this study, the economic value and benefits of habitat quality changes on Jeju Island were estimated through an integrated environmental and economic analysis linking the unit values of ecosystem services to the physical habitat quality measures predicted by the InVEST Habitat Quality Model. A choice experiment survey was conducted to estimate the willingness-to-pay for the changes in habitat quality at 12 tourist sites using a hybrid econometric model. The results indicate the presence of heterogeneity in respondents’ preferences for ecotourism destinations. Visitors were most sensitive to changes in the habitat quality level among three attributes: on-site facilities, information and interpretation services, and habitat quality. Based on the willingness-to-pay for each tourist site, the total benefit resulting from the improvement of habitat quality in the 12 tourist sites is substantial. The integrated environmental and economic analysis framework used in this study would effectively produce plausible economic values generated by environmental goods and services. The findings also provide a basis for considering the importance of economic benefits provided by ecosystem services in decision-making.