IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v39y2011i3p1687-1693.html
   My bibliography  Save this article

Effects of consumer subsidy on household fuel switching from coal to cleaner fuels: A case study for anthracites in Korea

Author

Listed:
  • Park, Hojeong
  • Kwon, Hyucksoo

Abstract

The Korean coal industry is in a transition under low carbon policy through the steady reduction of coal production. Since consumer subsidy for the consumption of anthracites briquette in low-income households caused a distortion in domestic coal market, the so-called coupon program will be the first target in energy reform policy in order to induce fuel switching from anthracites to alternative clean energy. This paper tries to identify various factors that influence households' fuel switching decision. Disutility from briquette consumption is also considered as an important factor. Using the 2007 census data on briquette-consuming households, it is found that the coupon program provides an adverse effect to switching fuels to clean energy while the disutility of briquettes is positively associated with the probability of fuel switching. However, the empirical finding suggests that the policy alone attempting to remove coupon program may fail to switch fuels unless the cost of boiler changes is substantially reduced through the provision of accessible networks to alternative energy sources. It indicates that reform policy for consumer subsidy must be understood in line with more comprehensive regional energy plans to resolve energy poverty issue.

Suggested Citation

  • Park, Hojeong & Kwon, Hyucksoo, 2011. "Effects of consumer subsidy on household fuel switching from coal to cleaner fuels: A case study for anthracites in Korea," Energy Policy, Elsevier, vol. 39(3), pages 1687-1693, March.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:3:p:1687-1693
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(11)00002-4
    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. Park, Hojeong & Lim, Jaekyu, 2009. "Valuation of marginal CO2 abatement options for electric power plants in Korea," Energy Policy, Elsevier, vol. 37(5), pages 1834-1841, May.
    2. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    3. Susan Olivia & John Gibson, 2008. "Household Energy Demand and the Equity and Efficiency Aspects of Subsidy Reform in Indonesia," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 21-40.
    4. Gupta, Gautam & Kohlin, Gunnar, 2006. "Preferences for domestic fuel: Analysis with socio-economic factors and rankings in Kolkata, India," Ecological Economics, Elsevier, vol. 57(1), pages 107-121, April.
    5. Martin Baughman & Paul Joskow, 1975. "The Effects of Fuel Prices on Residential Appliance Choice in the United States," Land Economics, University of Wisconsin Press, vol. 51(1), pages 41-49.
    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. Chen, Jiahui & Liao, Hua & Zhang, Tong, 2024. "Empowering women substantially accelerates the household clean energy transition in China," Energy Policy, Elsevier, vol. 187(C).
    2. Ling, Zhongqian & Ling, Bo & Kuang, Min & Li, Zhengqi & Lu, Ye, 2017. "Comparison of airflow, coal combustion, NOx emissions, and slagging characteristics among three large-scale MBEL down-fired boilers manufactured at different times," Applied Energy, Elsevier, vol. 187(C), pages 689-705.
    3. Kuang, Min & Zhu, Qunyi & Ling, Zhongqian & Ti, Shuguang & Li, Zhengqi, 2017. "Improving gas/particle flow deflection and asymmetric combustion of a 600 MWe supercritical down-fired boiler by increasing its upper furnace height," Energy, Elsevier, vol. 127(C), pages 581-593.

    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. Arthur, Maria de Fátima S.R. & Bond, Craig A. & Willson, Bryan, 2012. "Estimation of elasticities for domestic energy demand in Mozambique," Energy Economics, Elsevier, vol. 34(2), pages 398-409.
    2. Ben Abdallah, Skander & Lasserre, Pierre, 2016. "Asset retirement with infinitely repeated alternative replacements: Harvest age and species choice in forestry," Journal of Economic Dynamics and Control, Elsevier, vol. 70(C), pages 144-164.
    3. Oscar Gutiérrez & Francisco Ruiz-Aliseda, 2011. "Real options with unknown-date events," Annals of Finance, Springer, vol. 7(2), pages 171-198, May.
    4. Timothy Erickson & Toni M. Whited, 2000. "Measurement Error and the Relationship between Investment and q," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 1027-1057, October.
    5. Arve, Malin & Zwart, Gijsbert, 2023. "Optimal procurement and investment in new technologies under uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 147(C).
    6. Shively, Gerald E., 2001. "Price thresholds, price volatility, and the private costs of investment in a developing country grain market," Economic Modelling, Elsevier, vol. 18(3), pages 399-414, August.
    7. Marks, Phillipa & Marks, Brian, 2007. "Spectrum Allocation, Spectrum Commons and Public Goods: the Role of the Market," MPRA Paper 6785, University Library of Munich, Germany.
    8. Stern, Nicholas, 2018. "Public economics as if time matters: Climate change and the dynamics of policy," Journal of Public Economics, Elsevier, vol. 162(C), pages 4-17.
    9. Krause, M.U., 2002. "Inter-Industry Wage Differentials and Job Flows," Discussion Paper 2002-3, Tilburg University, Center for Economic Research.
    10. Wong, Kit Pong & Yi, Long, 2013. "Irreversibility, mean reversion, and investment timing," Economic Modelling, Elsevier, vol. 30(C), pages 770-775.
    11. Wang, Ke & Yang, Kexin & Wei, Yi-Ming & Zhang, Chi, 2018. "Shadow prices of direct and overall carbon emissions in China’s construction industry: A parametric directional distance function-based sensitive estimation," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 180-193.
    12. Pierre‐Richard Agénor, 2004. "Macroeconomic Adjustment and the Poor: Analytical Issues and Cross‐Country Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 18(3), pages 351-408, July.
    13. Atal, Vidya & Bar, Talia & Gordon, Sidartha, 2016. "Project selection: Commitment and competition," Games and Economic Behavior, Elsevier, vol. 96(C), pages 30-48.
    14. Yonggu Kim & Keeyoung Shin & Joseph Ahn & Eul-Bum Lee, 2017. "Probabilistic Cash Flow-Based Optimal Investment Timing Using Two-Color Rainbow Options Valuation for Economic Sustainability Appraisement," Sustainability, MDPI, vol. 9(10), pages 1-16, October.
    15. Bergendahl, Goran, 2005. "Models for investment in electronic commerce--financial perspectives with empirical evidence," Omega, Elsevier, vol. 33(4), pages 363-376, August.
    16. Prelipcean, Gabriela & Boscoianu, Mircea, 2019. "Aspect Regarding the Design of Active Strategies for Venture Capital Financing – the Flexible Adjustment for Romania as a Frontier Capital Market," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2019), Rovinj, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Rovinj, Croatia, 12-14 September 2019, pages 187-196, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    17. Wong, Kit Pong, 2011. "Progressive taxation and the intensity and timing of investment," Economic Modelling, Elsevier, vol. 28(1-2), pages 100-108, January.
    18. Chahim, M. & Hartl, R.F. & Kort, P.M., 2011. "The Deterministic Impulse Control Maximum Principle in Operations Research : Necessary and Sufficient Optimality Conditions (replaces CentER DP 2011-052)," Discussion Paper 2011-133, Tilburg University, Center for Economic Research.
    19. Unterschultz, James R., 2000. "New Instruments For Co-Ordination And Risk Sharing Within The Canadian Beef Industry," Project Report Series 24046, University of Alberta, Department of Resource Economics and Environmental Sociology.
    20. Waters, James, 2015. "Optimal design and consequences of financial disclosure regulation: a real options approach," MPRA Paper 63369, University Library of Munich, Germany.

    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:39:y:2011:i:3:p:1687-1693. 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.