Prioritizing public service investments and analyzing factors affecting willingness to pay for public services during the COVID-19 pandemic

a case study of rural areas in Chungnam Province, South Korea

authored by: Saem Lee, Trung Thanh Nguyen
Abstract: The COVID-19 pandemic has underscored a critical need for well-functioning public services, particularly in rural areas where access to the services is often limited. The purpose of this study is to evaluate the satisfaction and importance of public services in rural areas and analyze how the evaluation impacts residents’ willingness to pay (WTP) for public service improvements. This is to identify key services that require strategic investment during the COVID-19 pandemic. The results from the Importance-Performance Analysis show that public services' importance outweighs satisfaction, highlighting the need for improvement, particularly in medical emergency services, transportation, and cultural facilities. The results from the Heckman model indicate that both the satisfaction of residents with the service provision and their importance perceived by residents affect the propensity to pay and the intended amount of payment, including water and sewage, social work, and cultural facilities. The satisfaction is negatively associated while the importance is positively associated with WTP for public service improvement. In addition, income level and age of residents are found to be drivers of WTP as well. Policymakers are suggested to consider both the importance of services and the financial capacity of residents in designing interventions for improving public services in rural areas during the time of crises such as the COVID-19 pandemic.
Organisation(s): Institute of Environmental Economics and World Trade
External Organisation(s): Chungnam Institute
Type: Article
Journal: Discover Sustainability
Volume: 6
Publication date: 17.02.2025
Publication status: Published
Peer reviewed: Yes
ASJC Scopus subject areas: Geography, Planning and Development, Renewable Energy, Sustainability and the Environment, Environmental Science (miscellaneous), Energy (miscellaneous)
Sustainable Development Goals: SDG 7 - Affordable and Clean Energy
Electronic version(s): https://doi.org/10.1007/s43621-025-00887-6 (Access: Open)