Abstract
Renewable energy receives particular attention in Korea because of concerns about climate change and scarce traditional energy resources. The government plans to enhance photovoltaic (PV) power’s share of total power generation from 0.5% in 2014 to 10.1% in 2029. The present study tries to look into the public willingness to pay (WTP) for increasing PV power generation, applying the contingent valuation approach. A survey of 1000 interviewees was carried out in Korea. The observations of the WTP responses were gathered using a dichotomous choice question and analyzed employing the mixture model. The mean household WTP estimate is obtained as KRW 2183 (USD 1.9) per month, which possesses statistical significance. The total yearly WTP expanded to the population is worth KRW 476.9 billion (USD 423.1 million). These values can provide a useful basis for policy-making and decision-making about the economic feasibility of increasing PV power generation.
Highlights
Korea is an energy-deficit country with an energy self-sufficiency rate of only 4%, and the country’s primary energy supply heavily relies on fossil fuels
We found that stated preference (SP) methods have usually been applied to carrying out such tasks
The list of bids was determined through the focus group interview of thirty individuals as follows: first, we asked the willingness to pay (WTP) for the increase and obtained a set of WTP values; second, we deleted zero WTP values and sorted the remaining positive WTP values to look into empirical distribution; third, some bids were selected from the distribution
Summary
Korea is an energy-deficit country with an energy self-sufficiency rate of only 4%, and the country’s primary energy supply heavily relies on fossil fuels. Fossil fuels accounted for 83.0% of the total primary energy supply in Korea, including oil (38.1%), coal (29.7%), and natural gas (15.2%), in 2015 [1]. Energy production from fossil fuels can lead to carbon dioxide (CO2) emissions, which negatively affect climate change. It has been expected that renewable energy will play a major role in mitigating greenhouse gas emissions under the new climate regime [2]. Increased anxiety regarding nuclear power after the Fukuoka nuclear disaster has enlarged the demand for increasing power generation from renewable energy, one of the safe and sustainable energy sources. Many countries have been fostering the diffusion of renewable energy sources [3]
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