Estimation of Water Quality Impeovement Benefit Using Replacement Cost Approach in Korea

초록

The objectives of this study are to evaluate the effect of the stream water quality improvement by water discharge through dams and to provide a benefit estimation methodology by the replacement cost approach analyzed with a sewage treatment plant instead of an alternative dam. The facility that alternates a dam must have same functions as those of the discharged water from the dam and two facilities must be able to be compared objectively. The eatimation methodology of alternative facility's cost is established and the analysis period for an economic value test, the facility endurance time, and the equipment replacement period were presented. As a case study, the stream water quality improvement benefit of the Song-Li-Won Dam was evaluated, which is planned to be built on the Nae-Sung stream in the Nak-Dong River system. The results of applying this methodology to the Song-Li-Won Dam are 569.05million € of the annual average discharge and 1,202.30million€ of maximum discharge. The usage of the framework in this study is expected for estimation of water quality improvement benefit in case water quality improvement project is performed.