IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v137y2015icp301-309.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261914010575
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Loomis, John B., 1990. "Comparative reliability of the dichotomous choice and open-ended contingent valuation techniques," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 78-85, January.
    2. Martchamadol, Jutamanee & Kumar, S., 2013. "An aggregated energy security performance indicator," Applied Energy, Elsevier, vol. 103(C), pages 653-670.
    3. Kimberly Jensen & Christopher Clark & Burton English & Dustin Toliver, 2012. "Effects of Demographics and Attitudes on Willingness-to-Pay for Fuel Import Reductions through Ethanol Purchases," Agriculture, MDPI, Open Access Journal, vol. 2(3), pages 1-17, July.
    4. Wan-Jung Chou & Andrea Bigano & Alistair Hunt & Stephane La Branche & Anil Markandya & Roberta Pierfederici, 2011. "Households WTP for the Reliability of Gas Supply," Working Papers 2011-05, BC3.
    5. Halstead, John M. & Luloff, A.E. & Stevens, Thomas H., 1992. "Protest Bidders In Contingent Valuation," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 21(2), pages 1-10, October.
    6. Yao, Lixia & Chang, Youngho, 2014. "Energy security in China: A quantitative analysis and policy implications," Energy Policy, Elsevier, vol. 67(C), pages 595-604.
    7. Gouveia, João Pedro & Dias, Luís & Martins, Inês & Seixas, Júlia, 2014. "Effects of renewables penetration on the security of Portuguese electricity supply," Applied Energy, Elsevier, vol. 123(C), pages 438-447.
    8. W. Michael Hanemann, 1984. "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 332-341.
    9. Kim, Hoseok & Shin, Eui-soon & Chung, Woo-jin, 2011. "Energy demand and supply, energy policies, and energy security in the Republic of Korea," Energy Policy, Elsevier, vol. 39(11), pages 6882-6897.
    10. Augutis, Juozas & Krikstolaitis, Ricardas & Martisauskas, Linas & Peciulyte, Sigita, 2012. "Energy security level assessment technology," Applied Energy, Elsevier, vol. 97(C), pages 143-149.
    11. Bohi, Douglas R. & Toman, Michael A., 1993. "Energy security: externalities and policies," Energy Policy, Elsevier, vol. 21(11), pages 1093-1109, November.
    12. Sharifuddin, Shahnaz, 2014. "Methodology for quantitatively assessing the energy security of Malaysia and other southeast Asian countries," Energy Policy, Elsevier, vol. 65(C), pages 574-582.
    13. Månsson, André & Sanches-Pereira, Alessandro & Hermann, Sebastian, 2014. "Biofuels for road transport: Analysing evolving supply chains in Sweden from an energy security perspective," Applied Energy, Elsevier, vol. 123(C), pages 349-357.
    14. Jensen, Kimberly L. & Clark, Christopher D. & English, Burton C., 2012. "Effects of Demographics and Attitudes on WTP for Fuel Import Reductions through Ethanol Purchases," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119146, Southern Agricultural Economics Association.
    15. Jun, Eunju & Kim, Wonjoon & Chang, Soon Heung, 2009. "The analysis of security cost for different energy sources," Applied Energy, Elsevier, vol. 86(10), pages 1894-1901, October.
    16. Brookshire, David S, et al, 1982. "Valuing Public Goods: A Comparison of Survey and Hedonic Approaches," American Economic Review, American Economic Association, vol. 72(1), pages 165-177, March.
    17. 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 715-719, November.
    18. Portugal-Pereira, Joana & Esteban, Miguel, 2014. "Implications of paradigm shift in Japan’s electricity security of supply: A multi-dimensional indicator assessment," Applied Energy, Elsevier, vol. 123(C), pages 424-434.
    19. Michael Hanemann & John Loomis & Barbara Kanninen, 1991. "Statistical Efficiency of Double-Bounded Dichotomous Choice Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1255-1263.
    20. Wu, Gang & Liu, Lan-Cui & Han, Zhi-Yong & Wei, Yi-Ming, 2012. "Climate protection and China’s energy security: Win–win or tradeoff," Applied Energy, Elsevier, vol. 97(C), pages 157-163.
    21. Kruyt, Bert & van Vuuren, D.P. & de Vries, H.J.M. & Groenenberg, H., 2009. "Indicators for energy security," Energy Policy, Elsevier, vol. 37(6), pages 2166-2181, June.
    22. Demski, Christina & Poortinga, Wouter & Pidgeon, Nick, 2014. "Exploring public perceptions of energy security risks in the UK," Energy Policy, Elsevier, vol. 66(C), pages 369-378.
    23. Jang, Jinyong & Lee, Jongsu & Yoo, Seung-Hoon, 2014. "The public׳s willingness to pay for securing a reliable natural gas supply in Korea," Energy Policy, Elsevier, vol. 69(C), pages 3-13.
    24. Gracceva, Francesco & Zeniewski, Peter, 2014. "A systemic approach to assessing energy security in a low-carbon EU energy system," Applied Energy, Elsevier, vol. 123(C), pages 335-348.
    25. Ian J. Bateman & Richard T. Carson & Brett Day & Michael Hanemann & Nick Hanley & Tannis Hett & Michael Jones-Lee & Graham Loomes, 2002. "Economic Valuation with Stated Preference Techniques," Books, Edward Elgar Publishing, number 2639.
    26. Damigos, D. & Tourkolias, C. & Diakoulaki, D., 2009. "Households' willingness to pay for safeguarding security of natural gas supply in electricity generation," Energy Policy, Elsevier, vol. 37(5), pages 2008-2017, May.
    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


    Cited by:

    1. 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.
    2. Mohsin, M. & Zhou, P. & Iqbal, N. & Shah, S.A.A., 2018. "Assessing oil supply security of South Asia," Energy, Elsevier, vol. 155(C), pages 438-447.
    3. Hyo-Jin Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "The Convenience Benefits of the District Heating System over Individual Heating Systems in Korean Households," Sustainability, MDPI, Open Access Journal, vol. 9(8), pages 1-12, August.
    4. Behrang Vand & Aira Hast & Sanaz Bozorg & Zelin Li & Sanna Syri & Shuai Deng, 2019. "Consumers’ Attitudes to Support Green Energy: A Case Study in Shanghai," Energies, MDPI, Open Access Journal, vol. 12(12), pages 1-20, June.
    5. 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.
    6. Wang, Heming & Wang, Guoqiang & Qi, Jianchuan & Schandl, Heinz & Li, Yumeng & Feng, Cuiyang & Yang, Xuechun & Wang, Yao & Wang, Xinzhe & Liang, Sai, 2020. "Scarcity-weighted fossil fuel footprint of China at the provincial level," Applied Energy, Elsevier, vol. 258(C).
    7. 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.
    8. 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.
    9. Mamadzhanov, Alisher & McCluskey, Jill J. & Li, Tongzhe, 2019. "Willingness to pay for a second-generation bioethanol: A case study of Korea," Energy Policy, Elsevier, vol. 127(C), pages 464-474.
    10. Kim, Junghun & Park, Stephen Youngjun & Lee, Jongsu, 2018. "Do people really want renewable energy? Who wants renewable energy?: Discrete choice model of reference-dependent preference in South Korea," Energy Policy, Elsevier, vol. 120(C), pages 761-770.
    11. Wang, Qiang & Zhou, Kan, 2017. "A framework for evaluating global national energy security," Applied Energy, Elsevier, vol. 188(C), pages 19-31.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ang, B.W. & Choong, W.L. & Ng, T.S., 2015. "Energy security: Definitions, dimensions and indexes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1077-1093.
    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. Ren, Jingzheng & Sovacool, Benjamin K., 2014. "Quantifying, measuring, and strategizing energy security: Determining the most meaningful dimensions and metrics," Energy, Elsevier, vol. 76(C), pages 838-849.
    4. Wang, Deqing & Tian, Sihua & Fang, Lei & Xu, Yan, 2020. "A functional index model for dynamically evaluating China's energy security," Energy Policy, Elsevier, vol. 147(C).
    5. Narula, Kapil & Reddy, B. Sudhakara, 2016. "A SES (sustainable energy security) index for developing countries," Energy, Elsevier, vol. 94(C), pages 326-343.
    6. Zhao, Chunfu & Chen, Bin, 2014. "China’s oil security from the supply chain perspective: A review," Applied Energy, Elsevier, vol. 136(C), pages 269-279.
    7. Song, Yan & Zhang, Ming & Sun, Ruifeng, 2019. "Using a new aggregated indicator to evaluate China's energy security," Energy Policy, Elsevier, vol. 132(C), pages 167-174.
    8. Jang, Jinyong & Lee, Jongsu & Yoo, Seung-Hoon, 2014. "The public׳s willingness to pay for securing a reliable natural gas supply in Korea," Energy Policy, Elsevier, vol. 69(C), pages 3-13.
    9. Neelawela, U.D. & Selvanathan, E.A. & Wagner, L.D., 2019. "Global measure of electricity security: A composite index approach," Energy Economics, Elsevier, vol. 81(C), pages 433-453.
    10. García-Gusano, Diego & Iribarren, Diego & Garraín, Daniel, 2017. "Prospective analysis of energy security: A practical life-cycle approach focused on renewable power generation and oriented towards policy-makers," Applied Energy, Elsevier, vol. 190(C), pages 891-901.
    11. Gracceva, Francesco & Zeniewski, Peter, 2014. "A systemic approach to assessing energy security in a low-carbon EU energy system," Applied Energy, Elsevier, vol. 123(C), pages 335-348.
    12. Lu, Hongfang & Xu, FengYing & Liu, Hongxiao & Wang, Jun & Campbell, Daniel E. & Ren, Hai, 2019. "Emergy-based analysis of the energy security of China," Energy, Elsevier, vol. 181(C), pages 123-135.
    13. Gasser, Patrick, 2020. "A review on energy security indices to compare country performances," Energy Policy, Elsevier, vol. 139(C).
    14. Lee, Juyong & Cho, Youngsang, 2018. "Inconvenience cost of mobile communication failure: The case of South Korea," Telecommunications Policy, Elsevier, vol. 42(3), pages 241-252.
    15. Abdelrahman Azzuni & Arman Aghahosseini & Manish Ram & Dmitrii Bogdanov & Upeksha Caldera & Christian Breyer, 2020. "Energy Security Analysis for a 100% Renewable Energy Transition in Jordan by 2050," Sustainability, MDPI, Open Access Journal, vol. 12(12), pages 1-26, June.
    16. Böhringer, Christoph & Bortolamedi, Markus, 2015. "Sense and no(n)-sense of energy security indicators," Ecological Economics, Elsevier, vol. 119(C), pages 359-371.
    17. Matsumoto, Ken’ichi & Shiraki, Hiroto, 2018. "Energy security performance in Japan under different socioeconomic and energy conditions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 391-401.
    18. Kim, Hyo-Jin & Lim, Seul-Ye & Yoo, Seung-Hoon, 2017. "The Korean public's willingness to pay for expanding the use of solid refuse fuel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 821-827.
    19. Larsen, Erik R. & Osorio, Sebastian & van Ackere, Ann, 2017. "A framework to evaluate security of supply in the electricity sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 646-655.
    20. Abdullah, Fahad Bin & Iqbal, Rizwan & Hyder, Syed Irfan & Jawaid, Mohammad, 2020. "Energy security indicators for Pakistan: An integrated approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:137:y:2015:i:c:p:301-309. 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: (Nithya Sathishkumar). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.