Public willingness to pay for mitigating local conflicts over the construction of renewable energy facilities: A contingent valuation study in South Korea

Abstract

Despite the significant environmental benefits of transitioning to renewable energy sources, the development of renewable energy infrastructure may impose social and indirect environmental costs in siting areas. This creates a discordance between widespread public support for the energy transition and local community opposition to the construction of facilities near them. This study estimated the amount the public is willing to pay to prevent adverse impacts from such conflict using a contingent valuation methodology. The results indicate that the public's willingness to pay for mitigating local conflicts varies depending on their cause, with damage to the living environment considered most important. In addition, individuals who do not expect to directly face the negative externalities of electricity-related infrastructure during their lifetime are less willing to pay for its mitigation, while those who are know more about energy policy and are satisfied and credible with electricity services would likely pay more. Based on the findings, appropriate policy actions should be taken in a timely manner to facilitate societal agreement on the sharing of costs associated with the deployment of renewable energy infrastructure and to prevent additional costs from delaying the transition process.