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Korean public’s perceptions on supply security of fossil fuels: A contingent valuation analysis

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  • Kim, Jinsoo
  • Kim, Jihyo

Abstract

The supply security of fossil fuels is one of the most important policy issues in South Korea. This is because of South Korea’s economic condition, geopolitical status, and lack of energy resources. This study investigates the Korean public’s perceptions of the supply security of fossil fuels using the contingent valuation method. It derives the Korean public’s willingness to pay (WTP) for policy measures that enhance the supply security of fossil fuels, such as overseas energy development and strategic reserves. It also compares the WTP in terms of an increase in taxes on gasoline or diesel with the WTP in terms of an increase in the tax on electricity. The results demonstrate that the WTP will increase if the Korean public’s understanding of the importance of policy measures that boost the supply security of fossil fuels as well as the role of government in implementing these measures are enhanced. The comparison of the WTP shows that the Korean public will be less against an increase in the tax on electricity than an increase in the tax on gasoline or diesel. This is so even though the WTP amount for a tax increase on electricity is smaller than that for a tax increase on gasoline or diesel.

Suggested Citation

  • Kim, Jinsoo & Kim, Jihyo, 2015. "Korean public’s perceptions on supply security of fossil fuels: A contingent valuation analysis," Applied Energy, Elsevier, vol. 137(C), pages 301-309.
  • Handle: RePEc:eee:appene:v:137:y:2015:i:c:p:301-309
    DOI: 10.1016/j.apenergy.2014.10.016
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    Cited by:

    1. Cho, Sangmin & Kim, Jinsoo & Heo, Eunnyeong, 2015. "Application of fuzzy analytic hierarchy process to select the optimal heating facility for Korean horticulture and stockbreeding sectors," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 1075-1083.
    2. Kim, Jihyo & Kim, Jinsoo & Kim, Yoon Kyung, 2016. "Korean public's preference for supply security of oil and gas and the impact of protest bidders," Energy Policy, Elsevier, vol. 89(C), pages 202-213.
    3. Su, Meirong & Zhang, Mingqi & Lu, Weiwei & Chang, Xin & Chen, Bin & Liu, Gengyuan & Hao, Yan & Zhang, Yan, 2017. "ENA-based evaluation of energy supply security: Comparison between the Chinese crude oil and natural gas supply systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 888-899.
    4. Wang, Qiang & Zhou, Kan, 2017. "A framework for evaluating global national energy security," Applied Energy, Elsevier, vol. 188(C), pages 19-31.
    5. repec:eee:energy:v:155:y:2018:i:c:p:438-447 is not listed on IDEAS
    6. Lin, Boqiang & Tan, Ruipeng, 2017. "Estimation of the environmental values of electric vehicles in Chinese cities," Energy Policy, Elsevier, vol. 104(C), pages 221-229.
    7. repec:gam:jsusta:v:9:y:2017:i:8:p:1348-:d:106640 is not listed on IDEAS

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