Research on Consumer Willingness to Pay for Public Functionality of Agriculture

This study examines economic value of public functionality of agriculture using the contingent valuation method. Particularly, the study focuses on urban residents as subjects since they are the main beneficiaries of public functionality of agriculture. Using the double bounded dichotomous choice method, the results show that the household based economic value of public functionality of agriculture evaluates from 6,659won to 6,945won on a monthly basis. When we consider the total number of households, the total economic value per year is 1.866 trillion won, and when we consider the total number of people, the total economic value per year is 4.308 trillion won. In addition, we separate the sample into the higher knowledge group and the lower knowledge group based on knowledge about public functionality of agriculture. The economic value of the higher knowledge group is 9,294won, and that of the lower knowledge group is 5,760won. This result indicates that the government need to advertise and educate the public functionality of agriculture.