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Economic evaluation of willingness to pay for natural gas supply reliability in Korea

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  • Shin, Jeongmin
  • Nam, Solji
  • Jeong, Jaeho
  • Shin, Jungwoo

Abstract

This study evaluates the economic value and supports infrastructure development of constructing a circular network to improve natural gas supply stability. This study applies a double-bounded dichotomous choice model and shows that households and commercial users are willing to pay an additional 2.97% and 1.19% of their monthly gas bill, respectively. This study also shows the impact of gas supply understanding and population density on willingness to pay (WTP) for both sectors. Scenario analysis is conducted to analyze the cost-benefit ratio for a hypothetical region, which may be useful in setting up new business plans.

Suggested Citation

  • Shin, Jeongmin & Nam, Solji & Jeong, Jaeho & Shin, Jungwoo, 2024. "Economic evaluation of willingness to pay for natural gas supply reliability in Korea," Utilities Policy, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:juipol:v:91:y:2024:i:c:s0957178724001267
    DOI: 10.1016/j.jup.2024.101833
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