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Are Korean Households Willing to Pay a Premium for Induction Cooktops over Gas Stoves?

Author

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  • Hyo-Jin Kim

    (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, Korea)

  • Seul-Ye Lim

    (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, Korea)

  • Seung-Hoon Yoo

    (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 01811, Korea)

Abstract

Korean households generally prefer to use induction cooktops rather than gas stoves because of their greater convenience and safety features. This paper tries to investigate whether Korean households are willing to pay a premium for replacing their gas stoves, which are currently common in Korea, with induction cooktops, from the perspective of convenience and safety. To this end, a contingent valuation technique was applied to assess the additional willingness to pay (WTP) a premium for using an induction cooktop rather than a gas stove. A nationwide survey of 1000 households was carried out. The results indicate that the mean additional WTP for using an induction cooktop rather than a gas stove is KRW 207 (USD 0.19) per cubic meter of residential gas. This value can be interpreted as the convenience and safety benefits to the consumer of using an induction cooktop rather than a gas stove, or residential electricity rather than residential gas for cooking. It amounts to approximately 26.7% of the average 2015 price of residential gas, which was KRW 775 (USD 0.70) per cubic meter. If the gap between the price for residential electricity and the price for residential gas is less than the WTP value, households will increase their demand for residential electricity for cooking.

Suggested Citation

  • Hyo-Jin Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "Are Korean Households Willing to Pay a Premium for Induction Cooktops over Gas Stoves?," Sustainability, MDPI, vol. 9(9), pages 1-10, August.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:9:p:1546-:d:110354
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    References listed on IDEAS

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    Cited by:

    1. Ju-Hee Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2019. "Willingness to Pay Price Premium for Smartphones Produced Using Renewable Energy," Sustainability, MDPI, vol. 11(6), pages 1-11, March.
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    3. Ju-Hee Kim & Byoung-Soh Hwang & Seung-Hoon Yoo, 2022. "Estimating the Demand Function for Residential City Gas in South Korea: Findings from a Price Sensitivity Measurement Experiment," Sustainability, MDPI, vol. 14(12), pages 1-13, June.

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