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Assessment of government support for the household adoption of micro-generation systems in Korea

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  • Jeong, Gicheol

Abstract

This paper investigates how Korean government support affects household adoption of renewable energy-based micro-generation systems by analyzing household preferences in relation to the costs and benefits of system installation and different kinds of government support. The research adopts a discrete choice experiment approach and focuses on two micro-generation technologies: solar voltaic and solar thermal. Our empirical analysis revealed firstly that households prefer micro-generation systems that have low installation costs but high energy saving benefits and long warranty periods; and secondly that households prefer direct subsidies to low-interest loans. However, we also found that households are reluctant to install photovoltaic or solar thermal systems in reality because they see the cost of system installation as being higher than the benefits they would receive from such installation. In short, while existing government supports are somewhat effective in promoting household adoption of micro-generation systems, there also exists the obstacle that the majority of households are unwilling to install such systems despite government support. Thus several policy improvements, which focus on increasing the benefits and decreasing the installation costs of micro-generation systems, are suggested in this paper.

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  • Jeong, Gicheol, 2013. "Assessment of government support for the household adoption of micro-generation systems in Korea," Energy Policy, Elsevier, vol. 62(C), pages 573-581.
    • Handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:573-581
    DOI: 10.1016/j.enpol.2013.07.015
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    2. Karakaya, Emrah & Sriwannawit, Pranpreya, 2015. "Barriers to the adoption of photovoltaic systems: The state of the art," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 60-66.
    3. Sara Ghaboulian Zare & Reza Hafezi & Mohammad Alipour & Reza Parsaei Tabar & Rodney A. Stewart, 2021. "Residential Solar Water Heater Adoption Behaviour: A Review of Economic and Technical Predictors and Their Correlation with the Adoption Decision," Energies, MDPI, vol. 14(20), pages 1-26, October.
    4. Hassan, Md. Kamrul & Pelkonen, Paavo & Pappinen, Ari, 2014. "Rural households’ knowledge and perceptions of renewables with special attention on bioenergy resources development – Results from a field study in Bangladesh," Applied Energy, Elsevier, vol. 136(C), pages 454-464.
    5. Spyridon Karytsas & Ioannis Vardopoulos & Eleni Theodoropoulou, 2019. "Factors Affecting Sustainable Market Acceptance of Residential Microgeneration Technologies. A Two Time Period Comparative Analysis," Energies, MDPI, vol. 12(17), pages 1-20, August.
    6. Cohen, Jed J. & Azarova, Valeriya & Kollmann, Andrea & Reichl, Johannes, 2021. "Preferences for community renewable energy investments in Europe," Energy Economics, Elsevier, vol. 100(C).

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