Advanced Search
MyIDEAS: Login to save this article or follow this journal

Willingness to pay for renewable energy investment in Korea: A choice experiment study

Contents:

Author Info

  • Ku, Se-Ju
  • Yoo, Seung-Hoon
Registered author(s):

    Abstract

    Renewable energy sources are considered as alternatives for coping with the high price of oil and global warming. The Korean government has set a target that 11% of the total primary energy supply should be obtained through renewable energy sources until 2030. In order to develop proper policies for renewable energy investment, it is necessary to analyze the benefits of renewable energy investment based on households' willingness to pay. This study attempts to apply a choice experiment (CE) for assessing renewable energy investment in Korea. Moreover, we employ a multinomial probit (MNP) model to relax the assumption that all respondents have the same preferences for the attributes being valued, which is usually required in empirical CE studies. An MNP model allows the most flexible pattern of error correlation structure. The results reveal that the Korean public puts a value on the protection of wildlife, reduction of pollution, and increased employment opportunities. On the other hand, respondents do not derive significant values from the improvement of landscapes. This study is expected to provide policy-makers with useful information for evaluating and planning policies related to renewable energy investment.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6VMY-4YNB5Y6-2/2/b62d8cb0232bca615d754459c2e2c857
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.

    Volume (Year): 14 (2010)
    Issue (Month): 8 (October)
    Pages: 2196-2201

    as in new window
    Handle: RePEc:eee:rensus:v:14:y:2010:i:8:p:2196-2201

    Contact details of provider:
    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description

    Order Information:
    Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic

    Related research

    Keywords: Renewable energy sources Choice experiment Willingness to pay Multinomial probit model;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Geweke, John, 1989. "Bayesian Inference in Econometric Models Using Monte Carlo Integration," Econometrica, Econometric Society, vol. 57(6), pages 1317-39, November.
    2. Vassilis A. Hajivassiliou & Daniel L. McFadden, 1998. "The Method of Simulated Scores for the Estimation of LDV Models," Econometrica, Econometric Society, vol. 66(4), pages 863-896, July.
    3. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
    4. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November.
    5. Layton, David F., 2000. "Random Coefficient Models for Stated Preference Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 21-36, July.
    6. Bhat, Chandra R., 1995. "A heteroscedastic extreme value model of intercity travel mode choice," Transportation Research Part B: Methodological, Elsevier, vol. 29(6), pages 471-483, December.
    7. Vassilis A. Hajivassiliou & Daniel L. McFadden & Paul Ruud, 1993. "Simulation of Multivariate Normal Rectangle Probabilities and their Derivatives: Theoretical and Computational Results," Working Papers _024, Yale University.
    8. Alberto Longo & Anil Markandya & Marta Petrucci, 2006. "The Internalization of Externalities in The Production of Electricity: Willingness to Pay for the Attributes of a Policy for Renewable Energy," Working Papers 2006.132, Fondazione Eni Enrico Mattei.
    9. Menegaki, Angeliki, 2008. "Valuation for renewable energy: A comparative review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(9), pages 2422-2437, December.
    10. Timothy Park & John B. Loomis & Michael Creel, 1991. "Confidence Intervals for Evaluating Benefits Estimates from Dichotomous Choice Contingent Valuation Studies," Land Economics, University of Wisconsin Press, vol. 67(1), pages 64-73.
    11. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
    12. Keane, Michael P, 1994. "A Computationally Practical Simulation Estimator for Panel Data," Econometrica, Econometric Society, vol. 62(1), pages 95-116, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Dombi, Mihaly & Kuti, Istvan & Balogh, Peter, 2012. "Aspects Of The Sustainable Utilization Of Renewable Energy Sources," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 6(5).
    2. Ladenburg, Jacob & Lutzeyer, Sanja, 2012. "The economics of visual disamenity reductions of offshore wind farms—Review and suggestions from an emerging field," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(9), pages 6793-6802.
    3. Park, Eunil & Ohm, Jay Y., 2014. "Factors influencing the public intention to use renewable energy technologies in South Korea: Effects of the Fukushima nuclear accident," Energy Policy, Elsevier, vol. 65(C), pages 198-211.
    4. Lee, Shun-Chung, 2011. "Using real option analysis for highly uncertain technology investments: The case of wind energy technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4443-4450.
    5. Geem, Zong Woo, 2011. "Transport energy demand modeling of South Korea using artificial neural network," Energy Policy, Elsevier, vol. 39(8), pages 4644-4650, August.
    6. Lim, Seul-Ye & Lim, Kyoung-Min & Yoo, Seung-Hoon, 2014. "External benefits of waste-to-energy in Korea: A choice experiment study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 588-595.
    7. Dombi, Mihály & Kuti, István & Balogh, Péter, 2014. "Sustainability assessment of renewable power and heat generation technologies," Energy Policy, Elsevier, vol. 67(C), pages 264-271.
    8. Shin, Jungwoo & Woo, JongRoul & Huh, Sung-Yoon & Lee, Jongsu & Jeong, Gicheol, 2014. "Analyzing public preferences and increasing acceptability for the Renewable Portfolio Standard in Korea," Energy Economics, Elsevier, vol. 42(C), pages 17-26.
    9. Lee, Shun-Chung & Shih, Li-Hsing, 2011. "Enhancing renewable and sustainable energy development based on an options-based policy evaluation framework: Case study of wind energy technology in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2185-2198, June.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:14:y:2010:i:8:p:2196-2201. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.