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Incheon bay in Korea has favorable conditions for tidal power generation as it is Rias coast and has strong tide. This study evaluates economic feasibility for the tidal power plant project aimed at building 44 units of 30 ㎾ generators with 20 seawalls in Incheon bay area. Its economic value has bee...

Incheon bay in Korea has favorable conditions for tidal power generation as it is Rias coast and has strong tide. This study evaluates economic feasibility for the tidal power plant project aimed at building 44 units of 30 ㎾ generators with 20 seawalls in Incheon bay area. Its economic value has been estimated to result in 479.9 billion KRW per year based on the Contingent Valuation Method(CVM) that is a method of estimating the non-market value of public goods by asking a sample of the relevant population question about their willingness-to-pay(WTP). Considering the scenario of 3.9 trillion KRW facility investment, it is arithmetically feasible if the tidal power plant has durability for at least nine years or more. According to the macroeconomic Input-Output(IO) analysis, during the period of development (2010-2017), the tidal power plant project in the Incheon bay is estimated to generate 2.1 times of its actual investment (about 8.09 trillion KRW) in economic effect and create 184.9 billion KRW net tax revenues. Controversy over the project, however, exists over its environmental impact on the ecosystem in the west-cost wetland area of South Korea. The project should seek long-term outcome while lessening environmental damage caused by the construction.

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