4.2. Results: Estimation and Willingness to Pay
First, the estimation results for the introduction of smart policing technologies in cybercrime prevention for the general public and police officers are illustrated in
Table 4 and
Table 5, respectively.
The results show that the signs of the estimated parameters are the same for both the public and police. Both groups do not prefer an increase in taxes and privacy invasion. On the other hand, both groups prefer decreases in needed workforce and hacking crimes, as well as increased auto-blocking of harmful content.
However, when considering the extent to which each group prefers or does not prefer each attribute, a distinct difference between the public and police can be observed by looking at the relative importance estimates. Compared with the police, the public thought an increase in tax and invasion of privacy were more important and a decrease in manpower was less important. The police considered a decrease in manpower quite important. This may be because prevention of cybercrime is mainly about monitoring the cyber space, which is quite time consuming and stressful for police officers without the use of smart policing technologies. Also, this may imply that introduction of smart policing technologies do not threat police about maintaining their job. Finally, the police considered auto-blocking of harmful content more important than the public. This may be because some members of the public believe that auto-blocking of content is a type of censorship.
Next, if we look at the MWTP estimates, the police, who are the actual users, are less sensitive to an increase in taxes due to the introduction of smart policing technologies for cybercrime prevention, which causes the police’s MWTP to be relatively larger than that of the public. In introducing smart policing technologies for cybercrime prevention, police officers are willing to pay about 30% more to avoid privacy invasion, and about three times more to decrease the workforce needed by 10%.
The results of the introduction of smart policing technologies in cybercrime investigation for the general public and police officers are illustrated in
Table 6 and
Table 7, respectively.
Similar to the case of cybercrime prevention, the signs of coefficients are the same for significant coefficients of both the public and police. Both groups want to avoid an increase in taxes and privacy invasion and prefer an increase in the clearance rate. For the decrease in time spent for investigation, the estimates for both groups are not significant. This may be because both groups believe the investigation of a crime should be conducted carefully and that the time spent for this is not that important. The big difference between the public and police was as regards police misconduct. The public preferred a decrease in police misconduct, whereas this attribute was not significant for the police. This may represent the general public’s distrust in the police.
Next, by looking at the relative importance of the attributes, we can observe the differences between the two groups in more detail. The most significant difference is regarding the increase in tax. The police thought an increase in tax was less important than the public did for the prevention of crime, but the difference is quite significant than in the previous case. Increase in tax did have a significant effect on the police, but its magnitude was very small. This may imply that the police want to solve crimes while placing very low priority on the cost. Other than this, the relative importance of attributes significant to both groups was quite similar between the groups.
Next, when comparing the MWTP of the public and police officers, MWTP of the latter is exceptionally higher. For example, police officers are willing to pay 124,568 KRW/year to avoid privacy invasion, which is more than 80 times higher than that of the public (1505 KRW/year). As mentioned above, this is probably because police officers are extremely insensitive to increase in taxes when it comes to investigating crimes.
Finally, results for the prevention and investigation of cybercrime were considered by comparing the same attribute for an increase in taxes and for privacy invasion. Regarding the public, the sum of the relative importance of an increase in taxes and privacy invasion is 57.8% for investigation and 49.5% for prevention, which implies that the public considers that these two cost attributes of smart policing are more important in the investigation of cybercrime, meaning that the benefits of smart policing are more important for cybercrime prevention. On the other hand, regarding police officers, the sum of the relative importance of an increase in taxes and privacy invasion is 30.2% for investigation and 31.8% for prevention, which implies that police officers consider that the benefits of smart policing are more important in the investigation of cybercrime.
The abovementioned results stem from different perceptions toward policing activity between the two groups. The public would, of course, prefer more efficient investigation activity for cybercrime. Nonetheless, it benefits most from crime prevention. On the other hand, since the responsibility of police officers focuses on investigation, they consider efficient investigation activity to be more important than prevention.
4.3. Results: Simulations
Next, the study analyzes the acceptance of the public and police officers as the levels of tax increase and privacy invasion changes. First, to simulate the acceptance rate by the change in the level of an increase in taxes, the levels of other attributes are assumed to be fixed. Specifically, for cybercrime prevention, the assumed levels of other attributes are low risk of privacy invasion, 15% decrease in workforce needed, 15% decrease in hacking crimes, and 15% increase in auto-blocking of harmful content. For cybercrime investigation, the assumed levels are low risk of privacy invasion, 15% decrease in time spent for investigation, 10% increase in the clearance rate, and decrease in police misconduct. The results of this acceptance analysis are illustrated in
Table 8 and
Figure 3.
The results show that, in cybercrime prevention, the acceptance of police officers is higher than that of the public by about 20% to 30%, and the gap between the two groups widens as the level of increase in taxes expands, since the public is more sensitive to this attribute. On the other hand, for cybercrime investigation, the acceptance of police officers is steady at around 51%, regardless of an increase in taxes. The public’s level of acceptance is higher than that of police officers when the increase in taxes is below 100 KRW/year, but falls below that of police officers for a higher increase in taxes. If the results of cybercrime prevention and investigation are compared, the public’s sensitivity toward an increase in taxes is similar. However, regarding investigation, the results show high sensitivity for a low increase in taxes, and, regarding prevention, high sensitivity for a high increase in taxes.
Next, the study simulates acceptance as the intensity of the privacy invasion changes. The assumptions for the other attributes are the same as in the scenario of an increase in taxes, and a KRW 500 increase in taxes is assumed. The level of privacy invasion is then varied, and changes are observed; the results are illustrated in
Table 9 and
Figure 4.
The results show that, for both prevention and investigation of cybercrime, the acceptance of police officers is higher than that of the public. Additionally, the difference in acceptance for the prevention of cybercrime is much larger than that for investigation, which implies that different attitudes exist toward privacy invasion for cybercrime prevention between the public and police officers.
4.4. Results: Cost-Benefit Analysis
Next, using MWTP results for the public, a cost-benefit analysis is conducted, comparing the investment needed from the government (cost) and benefit to the public (benefit) when smart policing technologies are introduced for cybercrime prevention and investigation. This study assumes that the public benefits from a decrease in needed workforce, a decrease in hacking crimes, and auto-blocking of harmful content in cybercrime prevention as well as from a decrease in time spent for investigation, an increase in the clearance rate, and a decrease in police misconduct in cybercrime investigation. On the other hand, the assumption is that the public loses its benefits from privacy invasion for both cybercrime prevention and investigation.
The study assumes 21,173,397 households in South Korea [
47]. To calculate the total benefit of introducing smart policing technologies for cybercrime prevention, a scenario with a low level of privacy invasion, 10% decrease in workforce needed, 10% decrease in hacking crimes, and 10% increase in auto-blocking of harmful content is proposed. The annual household MWTP, total annual household MWTP, and total benefits to the public for cybercrime prevention are illustrated in
Table 10.
Next, for cybercrime investigation, the scenario has a low level of privacy invasion, 10% decrease in workforce needed, 5% increase in the clearance rate, and a decrease in police misconduct. Since the attribute of decrease in time spent for investigation does not have a significant effect on benefits to the public, it is not included in the analysis. The annual household MWTP, total annual household MWTP, and total benefit to the public from cybercrime investigation are illustrated in
Table 11.
Based on these results, the observed benefit of introducing smart policing technologies in cybercrime prevention and investigation is approximately KRW 1.3 billion. Since the National Police invest KRW 5.1 billion in policing R&D, and this budget is distributed between five major departments, the assumption is made that each department, including cyber safety, receives an investment of approximately KRW 1 billion. Considering the current department system of the police, smart policing can be grouped into five areas: investigation, traffic, public safety, cyber safety, and security. Therefore, according to the results of this study, the benefit of introducing smart policing technologies is larger than its cost.