Estimating values of private forests using a contingent valuation method

This study measured the economic values of private forests by applying the dichotomotous choice using contingent valuation method to offer information in support of the idea that compensation should be given to the utility functions of the private forests that account for 70% or more of the mountains in Korea. Target goods were private forests in Jeollabuk-do and sample units were household members who were selected at random. The respondents received a virtual market well, and most of them were willing to pay a certain amount to support the management of private forests, although they were negative toward providing compensation for private forests. The predictability, used as an index for how accurately model predicts practical reply contents, was 72.3%, a considerably high value. The annual average willingness to pay (WTP) per household was Korean Won 34,483. Being the first of its kind, this study estimated the WTP for supporting the management of private forests. Indeed, it will be only a part of the whole value of private forests, but this study drew out the economic values of private forests that provide public utility functions without compensation on the basis of the non-utility values rather than utility values for the private forests that are valued for social utilities as well as national economy. Therefore, the quantitative results of this study will be used as the information useful for the future private forest management policy.