Publisher : The Korea Society for Energy Engineering
DOI : 10.5855/ENERGY.2015.24.1.164
Title & Authors
Public Preferences for Replacing Hydro-Electricity Generation with Coal-Fired Power Generation Choi, Hyo-Yeon; Ryu, Mun-Hyun; Yoo, Seung-Hoon;
Although coal-fired power generation has played a role as base load unit, it has incurred various social costs in the process of generating and providing electricity. It is necessary to extend the proportion of low-carbon power generations, and reduce the ratio of coal-fired power generation to cope with global climate changes. This study, therefore, attempts to estimate the public`s willingness-to-pay (WTP) for substitution of supplied electricity from hydro-electricity generation, a representative renewable energy, for coal-fired power generation. To this end, we apply the contingent valuation (CV) method, widely used technique when valuing non-market goods, to elicit the public`s WTP. In addition, a spike model is employed to consider zero WTPs. After the empirical analysis with 1,000 households CV survey data, the results show that mean household`s WTP for replacing supplied electricity from hydro-electricity generation with coal-fired power generation is estimated to be about 54 KRW per kWh. The results of this study are expected to contribute to determining energy-mix and provide benefit information of hydro-electricity generation.
coal-fired power generation;hydro-electricity generation;social costs of power generations;contingent valuation method;
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