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Public Willingness to Pay for Increasing Photovoltaic Power Generation: The Case of Korea

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  • Min-Kyu Lee

    (Graduate School of Management of Technology, Pukyong National University, 365 Sinseon-Ro, Nam-Gu, Busan 48547, Korea)

  • Ju-Hee Kim

    (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

Renewable energy receives particular attention in Korea because of concerns about climate change and scarce traditional energy resources. The government plans to enhance photovoltaic (PV) power’s share of total power generation from 0.5% in 2014 to 10.1% in 2029. The present study tries to look into the public willingness to pay (WTP) for increasing PV power generation, applying the contingent valuation approach. A survey of 1000 interviewees was carried out in Korea. The observations of the WTP responses were gathered using a dichotomous choice question and analyzed employing the mixture model. The mean household WTP estimate is obtained as KRW 2183 (USD 1.9) per month, which possesses statistical significance. The total yearly WTP expanded to the population is worth KRW 476.9 billion (USD 423.1 million). These values can provide a useful basis for policy-making and decision-making about the economic feasibility of increasing PV power generation.

Suggested Citation

  • Min-Kyu Lee & Ju-Hee Kim & Seung-Hoon Yoo, 2018. "Public Willingness to Pay for Increasing Photovoltaic Power Generation: The Case of Korea," Sustainability, MDPI, vol. 10(4), pages 1-11, April.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:1196-:d:141201
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    5. Ayodele, T.R. & Ogunjuyigbe, A.S.O. & Ajayi, O.D. & Yusuff, A.A. & Mosetlhe, T.C., 2021. "Willingness to pay for green electricity derived from renewable energy sources in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
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