IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v139y2020ics0301421520300938.html
   My bibliography  Save this article

South Koreans’ perspective on assisting the power supply to North Korea: Evidence from a contingent valuation

Author

Listed:
  • Kim, Ju-Hee
  • Yoo, Seung-Hoon

Abstract

Korea is the only divided country in the world. While power is stably and reliably supplied in South Korea, North Korea (NK) is suffering from a severe power shortage. To improve power supply conditions in NK and ultimately contribute to building peace on the Korean Peninsula, the South Korean Government is considering assisting the construction of power plants and power grids in NK. The Government needs information about households’ willingness to pay (WTP) for assisting the power supply to NK. This article aims to examine the WTP using a contingent valuation based on a nationwide survey of 1000 households. As a WTP elicitation method, the one-and-one-half-bounded question format of asking an interviewee whether she/he has the intention of paying a presented bid through an increase in electricity bills was adopted. The WTP for the assistance was statistically significantly estimated to be KRW 2382 (USD 2.12) per month per household. The estimate of the annual national value amounted to KRW 564.6 billion (USD 503.6 million). This value is by no means small, but it would take a huge amount of effort to elicit public consensus on the assistance considering that a significant proportion of respondents (63.6%) revealed zero WTP.

Suggested Citation

  • Kim, Ju-Hee & Yoo, Seung-Hoon, 2020. "South Koreans’ perspective on assisting the power supply to North Korea: Evidence from a contingent valuation," Energy Policy, Elsevier, vol. 139(C).
    • Handle: RePEc:eee:enepol:v:139:y:2020:i:c:s0301421520300938
    DOI: 10.1016/j.enpol.2020.111336
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421520300938
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2020.111336?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Seung-Hoon Yoo & Seung-Jun Kwak, 2002. "Using a spike model to deal with zero response data from double bounded dichotomous choice contingent valuation surveys," Applied Economics Letters, Taylor & Francis Journals, vol. 9(14), pages 929-932.
    2. Seung-Hoon Yoo, 2004. "South Koreans' willingness to pay for Korean unification," Applied Economics Letters, Taylor & Francis Journals, vol. 11(1), pages 15-19.
    3. Ju-Hee Kim & Kyung-Kyu Lim & Seung-Hoon Yoo, 2019. "Evaluating Residential Consumers’ Willingness to Pay to Avoid Power Outages in South Korea," Sustainability, MDPI, vol. 11(5), pages 1-12, February.
    4. K. G. Mäler & J. R. Vincent (ed.), 2005. "Handbook of Environmental Economics," Handbook of Environmental Economics, Elsevier, edition 1, volume 3, number 3.
    5. Joseph C. Cooper & Michael Hanemann & Giovanni Signorello, 2002. "One-and-One-Half-Bound Dichotomous Choice Contingent Valuation," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 742-750, November.
    6. David J. Bjornstad & James R. Kahn (ed.), 1996. "The Contingent Valuation of Environmental Resources," Books, Edward Elgar Publishing, number 731.
    7. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    8. Sin, Hwa-Young & Heo, Eunnyeong & Yi, Sul-Ki & Kim, Jihyo, 2010. "South Korean citizen's preferences on renewable energy support and cooperation policy for North Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(5), pages 1379-1389, June.
    9. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
    10. 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.
    11. Daniel McFadden, 1994. "Contingent Valuation and Social Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 689-708.
    12. 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.
    13. 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.
    14. Guy Garrod & Kenneth G. Willis, 1999. "Economic Valuation of the Environment," Books, Edward Elgar Publishing, number 1368.
    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. Sung-Min Kim & Ju-Hee Kim & Seung-Hoon Yoo, 2020. "Households’ Willingness to Pay for Substituting Natural Gas with Renewable Methane: A Contingent Valuation Experiment in South Korea," Energies, MDPI, vol. 13(12), pages 1-13, June.
    2. Lee, Kyung-Sook & Kim, Ju-Hee & Yoo, Seung-Hoon, 2021. "Would people pay a price premium for electricity from domestic wind power facilities? The case of South Korea," Energy Policy, Elsevier, vol. 156(C).
    3. Koo, A Mi & Kim, Ju-Hee & Yoo, Seung-Hoon, 2022. "Household willingness to pay for a smart water metering and monitoring system: The case of South Korea," Utilities Policy, Elsevier, vol. 79(C).
    4. Ju-Hee Kim & Kyung-Ran Choi & Seung-Hoon Yoo, 2020. "Public Perspective on Increasing the Numbers of an Endangered Species, Loggerhead Turtles in South Korea: A Contingent Valuation," Sustainability, MDPI, vol. 12(9), pages 1-14, May.

    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. Ju-Hee Kim & Kyung-Ran Choi & Seung-Hoon Yoo, 2020. "Public Perspective on Increasing the Numbers of an Endangered Species, Loggerhead Turtles in South Korea: A Contingent Valuation," Sustainability, MDPI, vol. 12(9), pages 1-14, May.
    2. Kim, Ju-Hee & Lim, Seul-Ye & Yoo, Seung-Hoon, 2021. "Public preferences for introducing a power-to-heat system in South Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    3. Song, Tae-Ho & Lim, Kyoung-Min & Yoo, Seung-Hoon, 2015. "Estimating the public’s value of implementing the CO2 emissions trading scheme in Korea," Energy Policy, Elsevier, vol. 83(C), pages 82-86.
    4. Koo, A Mi & Kim, Ju-Hee & Yoo, Seung-Hoon, 2022. "Household willingness to pay for a smart water metering and monitoring system: The case of South Korea," Utilities Policy, Elsevier, vol. 79(C).
    5. Henry-Osorio, Miguel & Mittelhammer, Ronald C., 2012. "An Information-Theoretic Approach to Modeling Binary Choices: Estimating Willingness to Pay for Recreation Site Attributes," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123432, Agricultural and Applied Economics Association.
    6. Sardana, Kavita, 2019. "Tourists' Willingness to Pay for Restoration of Traditional Agro-forest Ecosystems Providing Biodiversity: Evidence from India," Ecological Economics, Elsevier, vol. 159(C), pages 362-372.
    7. Lim, Seul-Ye & Kim, Hyo-Jin & Yoo, Seung-Hoon, 2017. "Public's willingness to pay a premium for bioethanol in Korea: A contingent valuation study," Energy Policy, Elsevier, vol. 101(C), pages 20-27.
    8. Lim, Seul-Ye & Min, Seo-Hyeon & Yoo, Seung-Hoon, 2016. "The public value of contaminated soil remediation in Janghang copper smelter of Korea," Resources Policy, Elsevier, vol. 50(C), pages 66-74.
    9. 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.
    10. Lim, Seul-Ye & Kim, Hyo-Jin & Yoo, Seung-Hoon, 2018. "Household willingness to pay for expanding fuel cell power generation in Korea: A view from CO2 emissions reduction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 242-249.
    11. 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.
    12. Lim, Kyoung-Min & Lim, Seul-Ye & Yoo, Seung-Hoon, 2014. "Estimating the economic value of residential electricity use in the Republic of Korea using contingent valuation," Energy, Elsevier, vol. 64(C), pages 601-606.
    13. Lee, Kyung-Sook & Kim, Ju-Hee & Yoo, Seung-Hoon, 2021. "Would people pay a price premium for electricity from domestic wind power facilities? The case of South Korea," Energy Policy, Elsevier, vol. 156(C).
    14. Kim, Hyo-Jin & Lee, Hye-Jeong & Yoo, Seung-Hoon, 2018. "Are South Korean people willing to pay for official development assistance for building renewable power plants in developing countries?," Energy Policy, Elsevier, vol. 118(C), pages 626-632.
    15. Halkos, George, 2012. "The use of contingent valuation in assessing marine and coastal ecosystems’ water quality: A review," MPRA Paper 42183, University Library of Munich, Germany.
    16. Sung-Min Kim & Ju-Hee Kim & Seung-Hoon Yoo, 2020. "Households’ Willingness to Pay for Substituting Natural Gas with Renewable Methane: A Contingent Valuation Experiment in South Korea," Energies, MDPI, vol. 13(12), pages 1-13, June.
    17. Hye-Jeong Lee & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "The Public Willingness to Pay for Reducing the Incidence of Hazardous Chemical Spill Accidents by Half in South Korea," Sustainability, MDPI, vol. 10(8), pages 1-15, July.
    18. So-Yeon Park & Seul-Ye Lim & Seung-Hoon Yoo, 2016. "The Economic Value of the National Meteorological Service in the Korean Household Sector: A Contingent Valuation Study," Sustainability, MDPI, vol. 8(9), pages 1-13, August.
    19. Hermann Donfouet & P. Jeanty & P.-A. Mahieu, 2014. "Dealing with internal inconsistency in double-bounded dichotomous choice: an application to community-based health insurance," Empirical Economics, Springer, vol. 46(1), pages 317-328, February.
    20. Giffoni, Francesco & Florio, Massimo, 2023. "Public support of science: A contingent valuation study of citizens' attitudes about CERN with and without information about implicit taxes," Research Policy, Elsevier, vol. 52(1).

    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:enepol:v:139:y:2020:i:c:s0301421520300938. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.