Social Impact Assessment of the Limestone Mining Industries in

Document Sample
Social Impact Assessment of the Limestone Mining Industries in Powered By Docstoc
					The 27th Annual Conference International Association for Impact Assessment
6-9 June 2007, COEX Convention Center, Seoul, Korea




      Social Impact Assessment of the
         Limestone Mining Industries
       in Local Communities of Korea

                                Daejin University
                                Shin, Young Chul
                               ycshin@daejin.ac.kr
                   Contents

   Introduction ☜
   Survey Method
   Opinions about Strip Mining
   Estimation of Damage Cost
   WTP for Suggested Policies
   Conclusion


                                  2
                    Introduction
   Purpose

       To reveal opinions about limestone mining(strip
        mining)
       To quantify experiences of damage and damage
        cost

       Use questionnaire survey method
       Include non-use value as well as use value of
        natural resources
                                                          3
                  Introduction
   Fig. Strip mining of limestone in Korea




                                              4
                    Introduction
   Limestone Mining in Kangwon Do
       92% of total limestone reserves
       Over 95% of total cement product




                                           5
                  Introduction

   Deforestation size due to limestone mining in
    Korea = 1,976 ha

   Deforestation size of 3 cities (Donghae,
    Samcheok, Yeongwol) in Kangwon do
    = 1,274 ha (64.5% of total)



                                                    6
                     Introduction
   Damage types of limestone mining and
    cement industries

       Deforestation due to strip mining
       Health effects(mortality and morbidity) due to air
        pollution materials
       Increases of disamenity and averting behavior
        cost
       Damages of noise and shaking
       Other damages
                                                             7
                   Contents

   Introduction
   Survey Method ☜
   Opinions about Strip Mining
   Estimation of Damage Cost
   WTP for Suggested Policies
   Conclusion


                                  8
                  Survey Method
   Survey #1: Inhabitants survey in limestone
    mining area

       Population: Donghae city, Samcheok city, and
        Yeongwol gun in Kangwon Do
       Sample size: 991 households
       Survey method: person-to person interview
       Principal questions: opinions about experience of
        damage due to limestone mining, minimum
        compensation

                                                            9
                  Survey Method
   Survey #2: Nationwide CVM(contingent valuation
    method) survey

       Population: entire national households
       Sample size: 1,000 households
       Survey method: internet survey
       Principal questions: opinions about limestone
        mining, willingness-to-pay(welfare measure) for
        suggested policies


                                                          10
                  Survey Method
   Contingent Valuation Method(CVM)

       Economic Valuation Method of Non-maketed
        goods
       Stated preference method( cf. revealed
        preference method, benefit transfer)
       Direct questionnaire approach of asking a sample
        of individuals to state their maximum WTP for
        preserving an environmental asset or suggested
        policies

                                                       11
                  Contents

   Introduction
   Survey Method
   Opinions about Strip Mining ☜
   Estimation of Damage Cost
   WTP for Suggested Policies
   Conclusion


                                    12
     Opinions about Limestone Mining
   Contribution or Damage of Limestone Mining to
    Local Communities
                     100%



                      80%


                      60%



                      40%


                      20%


                       0%
                            Donghae   S amcheok   Y eongw ol   Mean
    Don't Know                 9
                              4.         6.
                                          6          5.
                                                      8         7
                                                               5.
    Extreme Damage             7
                              8.         7.
                                          6         14.
                                                      8          4
                                                               10.
    S light Damage             0
                             13.        10.
                                          3         14.
                                                      9          8
                                                               12.
    S ame                      4
                             29.        37.
                                          4         36.
                                                      2          4
                                                               34.
    S light Contribu tion      8
                             23.        28.
                                          6         20.
                                                      3          2
                                                               24.
    Extreme Contribu tion      2
                             20.         9.
                                          5          8.
                                                      0          5
                                                               12.


                                                                      13
     Opinions about Limestone Mining
   Damage Severity due to Limestone Mining

                  100%

                      90%

                      80%

                      70%

                      60%

                      50%

                      40%

                      30%

                      20%

                      10%

                      0%
                            Donghae   S amcheok   Y eongw ol   Mean
     Extremely S evere         1
                             14.        10.
                                          9         15.
                                                      4          4
                                                               13.
     S lightly S evere         6
                             61.        54.
                                          1         55.
                                                      1          9
                                                               56.
     Little S evere            3
                             19.        28.
                                          9         26.
                                                      1          8
                                                               24.
     Not S evere at all        0
                              5.         6.
                                          1          3.
                                                      4         8
                                                               4.


                                                                      14
     Opinions about Limestone Mining
   Most Serious Damage to Inhabitants
                     100%

                     90%

                     80%

                     70%

                     60%

                     50%

                     40%

                     30%

                     20%

                     10%

                          0%
                               Donghae   S amcheok   Y eongw ol   Mean
    Other Damages                 3
                                 8.         7.
                                             7          8.
                                                         5         2
                                                                  8.
    Nois e & V ibration           9
                                 5.         7.
                                             8         10.
                                                         7         1
                                                                  8.
    Dis amenity Increas e         4
                                 5.        16.
                                             5          6.
                                                         6         5
                                                                  9.
    Health Effects                3
                                25.        51.
                                             5         40.
                                                         5          1
                                                                  39.
    Defores tation                1
                                55.        16.
                                             4         33.
                                                         7          1
                                                                  35.


                                                                         15
                       Opinions about Limestone Mining
                 Minimum Compensation per Household
                                 180

                                 160

                                 140

                                 120
    unit: 10,000 won




                                 100

                                  80

                                  60

                                  40

                                  20

                                   0
                                        Donghae   S amcheok   Y eongw ol   Mean
                       Mean               100        170          99       127
                       50% percentile     30         50           50        50
                       75% percentile     100        100         100       100


                                                                                  16
                   Contents

   Introduction
   Survey Method
   Opinions about Strip Mining
   Damage Cost Estimation☜
   WTP for Suggested Policies
   Conclusion


                                  17
           Damage Cost Estimation
   Deforestation with Mt. destruction
       CVM to include use value & non-use value:
        16,421 (10 thousand won)/ha
       Total: 26,364 million won

   Health effect1: cost of premature mortality
       Benefit transfer: VSL(value of a statistical life) =
        142,210 (10 thousand won)
       Total: 3,857 million won


                                                               18
          Damage Cost Estimation
   Health effect2: cost of illness
       Unit costs of illnesses from inhabitants survey
       Total: 4,289 million won


   Cost of damages except health effects due to
    air pollution
       Averting behavior cost, clearing cost, outdoor
        activity restriction, disamenity: inhabitants survey
        & benefit transfer
       Total: 13,840 million won
                                                           19
          Damage Cost Estimation
   Cost of noise and shaking
       Benefit transfer: unit value of dB = 67,400 won
       Total: 257 million won

   Cost of other Damages
       Unit costs from inhabitants survey
       Total: 935 million won



                                                          20
                                 Damage Cost Estimation
                   Estimated Damage Costs per Year: 51,542M
                      14,000




                      12,000




                      10,000
unit: million won




                       8,000




                       6,000




                       4,000




                       2,000




                          0
                                                                                                                                      Noise &
                                               Premature    Morbidity   Averting Cost   Cleaning Cost Outdoor Activity   Disamenity
                               Deforestation                                                                                          Vibration   Other Damage
                                                Mortality   Increase      Increase         Increase     Restriction       Increase
                                                                                                                                      Damage
                    Donghae       7,520          1,738       1,158          203            4,433           1,652            461          172          399
                    Samcheok      8,179          1,676       2,981          321            2,754           3,274            146          67           483
                    Yeongwol      12,665          443         150           21              354             115             106          18           53


                                                                                                                                                                 21
                  Contents

   Introduction
   Survey Method
   Opinions about Strip Mining
   Estimation of Damage Cost
   WTPs for Suggested Policies ☜
   Conclusion


                                    22
        WTPs for Suggested Policies
   Suggested Policies of CVM

       Purchase the forest areas which have high value
        of preservation
       Support systematic ecological restoration
       Support alternative industrial development as a
        kind of restoration
       Support damage mitigation and compensation


                                                      23
        WTPs for Suggested Policies
   WTP Model for CV data
       Random utility model (RUM)
            Indirect utility function v(y, Z, q, ε)

       v(y, Z, q1, ε) > v(y, Z, q0, ε)

       V(y, Z, q1, ε) = v(y+CS, Z, q0, ε)

       WTP =CS =CS(y, Z, q0, q1, ε) = X’β+ ε

                                                       24
     WTPs for Suggested Policies
   Estimation method of WTP model




                                     25
       WTPs for Suggested Policies
   Allocation Ratios of WTP for Suggested Policies
                          100%
                            90%

                            80%
                            70%
                            60%
                            50%
                            40%
                            30%
                            20%
                            10%
                               0%
                                             Mean of 3
                                    Nation               Donghae   S amcheok   Y eongw ol
                                               city
    Damage Mitigation &                0
                                     18.       26.
                                                 3           5
                                                           23.         5
                                                                     28.           8
                                                                                 26.
    Compens ation
    Alternative Indus trial Us e       9
                                     18.       26.
                                                 7           9
                                                           27.         8
                                                                     25.           6
                                                                                 26.
    S y s tematic Ecological           4
                                     36.       26.
                                                 6           8
                                                           29.         3
                                                                     24.           7
                                                                                 25.
    Res toration
    Purchas ing Fores t                8
                                     26.       22.
                                                 6           1
                                                           23.         5
                                                                     23.           2
                                                                                 21.


                                                                                            26
            WTPs for Suggested Policies
     WTP per year for suggested policies: 79,549M
                                     35,000


                                     30,000


                                     25,000


                                      20,000
                 unit: million won
                                      15,000


                                      10,000


                                       5,000
                                                                                                                                      95% higher

                                              0                                                                                   95% lower
                                                  Purchasing Forest
                                                                      Ecological                                              WTPs
                                                                      Restoration       Alternative
                                                                                         Industrial   Damage Mitigation
                                                                                       Development    or Compensation



                     Purchasing Forest                        Ecological Restoration         Alternative Industrial Development   Damage Mitigation or Compensation
    WTPs                  21,279                                     28,916                                 15,059                             14,295
    95% lower             18,819                                     25,572                                 13,317                             12,642
    95% higher            24,062                                     32,697                                 17,028                             16,164

                                                                                                                                                                27
                   Contents

   Introduction
   Survey Method
   Opinions about Strip Mining
   Estimation of Damage Cost
   WTP for Suggested Policies
   Conclusion ☜


                                  28
                     Conclusion
   Questionnaire Survey Method: useful to
    assess social impact

       Reveal opinions about specific issues
       Estimate damage costs of a region using benefit
        transfer
       Estimate WTPs for suggested policies or
        preserving natural asset using CVM
       benefit cost analysis of specific issues

                                                          29
                     Conclusion
   Benefit Cost Analysis
       Total damage cost of limestone mining in 3 cities
        = 51,542 million won per year
       WTP for suggested policies = 79,549 million won
        per year

   Implementing the suggested policies is
    needed to improve national welfare


                                                        30
Thank you !