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WILLINGNESS TO PAY FOR FLOOD RISK REDUCTION AND ITS DETERMINANTS IN JAPAN1
Authors:Guofang Zhai  Teruko Sato  Teruki Fukuzono  Saburo Ikeda  Kentaro Yoshida
Abstract:ABSTRACT: This study aimed to clarify public preferences for flood control measures in Japan, willingness to pay (WTP), and the main factors involved in WTP by applying the contingent valuation method. Findings showed that most residents surveyed expected some flood control measures, and revealed a diversity of interest in river management. WTP levels for different measures ranged from a mean of ¥2,887 to ¥4,861 and from a median of ¥1,000 to ¥2,000. However, WTP for additional flood risk reduction beyond initial levels was found to be zero. This was considered to be because WTP for flood risk reduction must be determined within a multi‐risk context. WTP for flood control measures may increase with per capita income, individual preparedness, and/or experience with flooding, but may decrease with distance from a river, acceptability of flood risk, and provision of environmental information. Furthermore, perception of flood risk may increase WTP, while perception of other risks may decrease it. Methods of dealing with environmental risk that were proposed in the survey may have affected WTP levels.
Keywords:willingness to pay (WTP)  flood risk reduction  contingent valuation method (CVM)  Japan
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