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Public Preferences for Replacing Hydro-Electricity Generation with Coal-Fired Power Generation

석탄화력 발전 대비 수력 발전에 대한 국민 선호도 분석

Choi, Hyo-Yeon;Ryu, Mun-Hyun;Yoo, Seung-Hoon
최효연;류문현;유승훈

  • Received : 2015.02.09
  • Accepted : 2015.03.05
  • Published : 2015.03.31

Abstract

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.

Keywords

coal-fired power generation;hydro-electricity generation;social costs of power generations;contingent valuation method

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