Policy designs to increase public and local acceptance for energy transition in South Korea

Abstract

Energy transition in the power sector, which is a structural transformation of existing fossil fuel-based power systems to more sustainable forms by increasing the renewable energy share, is an essential precondition for achieving net-zero. As it is inevitable to build additional renewable energy power plants near residential areas during the energy transition process, relevant policies should consider the acceptance of local residents dwelling near the power plants as well as the general public. Comparative analysis on the preferences of the public and local for energy mix composition and attributes of energy transition policy can contribute to better policy implementation, but further exploration and analysis are required. To this end, this study aims to explore an energy transition policy that can simultaneously maximize the acceptance of the public and local based on the stated preferences data estimated through a mixed logit model. The results show that both public and local prefer offshore wind-based renewable energy portfolios, while the fuel cell-based renewable energy portfolio is the least preferred option. Further, the scenario analysis identifies that measures to provide socio-economic benefits to the local community can guarantee the acceptance of the policy by local residents rises to the level of the public.