CO2 leakage environmental damage cost – A CCS project in South Korea

Abstract

The safety of CCS, namely the prevention of CO2 leakage, is one of the most sensitive issues in the CCS project. In order to solve this issue efficiently, the knowledge of environmental damage cost of CO2 leakage, in advance of CCS project, is indispensable. Therefore, this study estimates this cost by employing a contingent valuation (CV) method with data collected from a nationwide survey in South Korea. In addition, numerous zero willingness to pay (WTP) responses were dealt thorough the spike model in setting one-and-one-half-bound dichotomous choice data (OOHBDC). The estimate of the annual mean WTP was 2645.9 Korean won (USD 2.4), while the annual mean WTP is 3489.8 Korean won (USD 3.2) for those supporting the introduction of CCS technology in South Korea. The environmental damage cost of CO2 leakage was 49.5 billion Korean won (USD 45.0 million) annually.