| dc.description.abstract | The climate change, shortage of water and environment pollution has become a big issue all over the world. Korea is classified as country with suffering from water shortage. Especially, in case of Jeju Island, it is completely depending on subterranean water not only drinking water but also public water, industrial water and agricultural water, etc. because of its hydro-geological condition unlike the inland. The importance of subterranean water of Jeju Island has highlighted since the water demand has greatly increased due to improvement of the standard of living, growth of tourism population and changes of agricultural patterns, etc.
Also, the subterranean water constitutes an important element in Jeju Island in terms of human scientific and ecological environment, and it carries out various roles such as preserving the ecological system of the island. However, although the subterranean water has been wielding a great influence on the society, economy and industry of Jeju Island, there has been almost none evaluation on the economic and non-economic value of such subterranean water. Therefore, it is required to prepare a basic data for the sustainable development of water industry and maintain a basic statistical data for the industrialization of the subterranean water of Jeju Island by analyzing the co-relations of the subterranean water with the local economy and industry and by evaluating the economical and ecological value of the subterranean water in Jeju Island.
Jeju Island has an ideal given conditions of a warm climate which is appropriate for agriculture, forestry and fishery industries including horticulture, etc. On the other hand, the infrastructure of manufacture industry is not substantial because of its geographical limit as an island. Due to such conditions, the industrial structure of Jeju Island has given importance on agricultural industry and tourism industry which demand large volume of water. Per annum, Jeju Island use 117 million tons of water and 72.5% of it (85 million tons) uses for agriculture. Public water takes 25.1% (29 million tons) and industrial water and others takes 2.3% (3 million tons).
Taking a look at the water industry of Jeju Island in 2005, its gross domestic product was KRW 105.3 billion, its added value was KRW 56.8 billion and it employed a total of 394 persons. They take respectively 0.76%, 0.76%, and 0.19% of local industry. Among those, the drinking water industry's gross domestic product, added value and employment was KRW 65.02 billion, KRW 32.26 billion and 273 persons in that order. On the other hand, the gross domestic product, added value and employment of water supply industry of Jeju Island was KRW 40.26, KRW 24.54 and 273 persons. In terms of production, the drinking water industry was bigger than the water supply industry in size. However, in terms of employment, the water supply industry was bigger than drinking water industry in size. According to the analysis results, the drinking water industry was bigger in terms of the final demand and the water supply industry was bigger in terms of intermediate demand.
In order to analyze the economic effect of water industry, the effect was analyzed by the scenario using the Regional Input-output Table. According to the results, in case where the demand of drinking water of Jeju Island increases up to 10%, the gross domestic product of Jeju Island would increase up to KRW 7.5 billion and added valued would increase KRW 3.7 billion and it would create 32 more jobs. In case where the demand of tourism (accommodation industry and restaurant business) increases 10% (KRW 100 billion), the gross domestic product of Jeju Island would increase up to KRW 138.7 billion and added valued would increase KRW 65.4 billion and it would create 3,171 more jobs.
On the other hand, if the water supplies of Jeju Island decrease by 10%, it is estimated that the gross domestic product, added value and employment would be decreased by KRW 8.6 billion, KRW 5.1 billion and 98 persons respectively. Especially, it was analyzed that the decrease of water supply would affect most greatly the water industry followed by the service industry, accommodation and restaurant industry, vegetable and fruit agricultural industry, and fishery culture industry. Therefore, if the supply of subterranean water should decrease due to changes of water volume and quality, it could have a great influence on the 1st and 3rd industry related to water.
It was estimated that the economic and non- economic value of subterranean water of Jeju Island would be about 158 trillion. According to the results of the inter-industry analysis on economic value of water industry, it was estimated as KRW 111 billion. Considering the inflation, its value in 2008 was estimated as KRW 123.3 billion. According to the results of estimating the consumer's surplus using the non-economic value analysis method, it was estimated as KRW 1.7~2.4 billion for the residents of Jeju Island and KRW 304.7 billion for the visitors to the Jeju Island. Based on 645 million tons of permitted volume of use of subterranean water, the potential use value of subterranean water was estimated KRW 985 if applied by the production unit cost of water supply and drainage, KRW 137.4 billion if applied by average supply unit cost of raw water, KRW 90.3 billion if applied by the average supply unit cost of agricultural water if applied by the price of Samdasu, KRW 2.7491 billion and 154 trillion if applied by the average selling price of Samdasu.
Due to geographical disproportion of water affected by continuing climate changes and increased use of water source, it is forecasted that the economic value of subterranean water of Jeju Island will be escalated. In order to be prepared for water shortage in the future due to population increase and climate changes and lay stable foundation of water industry of Jeju Island, it is highly required to establish more infrastructures related to water industry. Especially, it is necessary to establish an efficient and reliable statistical system which helps to figure out the water circulation structure of Jeju Island to use it as basic data for making policy and investment.
Also, it is required to extend the range of water related industry based on the subterranean water resources. Such as high value industry connected to tourism and service industry reflecting the environmental features of the Jeju Island and innovative water circulation system, a comprehensive countermeasure to create economic value and to evaluate the quality of life of Jeju residents are to be devised.
Researchers: Myung-Hwan Sung, Hyun-Tae Park, Sang-Min Lee, Kyung-Phil Kim, Hye-Sung Han, Ji-Yung Kang, and Hio-Jung Shin
Email address: mhsung@krei.re.kr | - |
