• Energy Research
• 12. Responsible consumption close

To meet international efforts to prevent climate change, the South Korean government is seeking to transform its main power source from coal to natural gas (NG), which emits less carbon dioxide (CO2) than coal. The government needs information about public preferences for increasing NG-fired generation. Therefore, the purpose of this paper is to provide the government with this information by gathering the data on public preferences for increasing NG-fired generation for reducing CO2 emissions, analyzing these data, and obtaining the implications from the analysis. To this end, a survey of 1000 people, after explaining the merits and demerits of NG-fired power, were asked to determine the proper ratio of NG-fired generation by choosing one of six examples: lower than 10%, 10%–20%, 20%–30%, 30%–40%, 40%–50%, and higher than 50%. An interval data model was employed to deal with the data. The average value of the ratio was estimated to be 26.7% with statistical significance, which is greater than the actual value of 22.2% from 2017. Finally, whether and how much some variables such as education level, age, gender, and income level of the respondent affected their preferences for NG-fired generation were investigated.

This paper attempts to investigate the short- and long-run causality issues among oil consumption, CO2 emissions, and economic growth in the Philippines by using time series techniques and annual data for the period 1965–2012. Tests for unit root, co-integration, and Granger-causality tests based on an error-correction model are presented. Three important findings emerge from the investigation. First, there is bi-directional causality between oil consumption and economic growth, which suggests that the Philippines should endeavor to overcome the constraints on oil consumption to achieve economic growth. Second, bi-directional causality between oil consumption and CO2 emissions is found, which implies that the Philippines needs to improve efficiency in oil consumption in order not to increase CO2 emissions. Third, uni-directional causality running from CO2 emissions to economic growth is detected, which means that growth can continue without increasing CO2 emissions.

Heat accounts for about one-third of the final energy use and it is mostly produced using fossil fuels in South Korea. Thus, heat production is an important source of greenhouse gas emissions. However, using renewable heat that is directly produced from renewable energy, such as bioenergy, geothermal, or solar heat can save energy and reduce greenhouse gas emissions, rather than transforming conventional fuel into heat. Therefore, an energy policy for renewable heat urgently needs to be established. It is such situations that this paper attempts to assess the consumers’ additional willingness to pay (WTP) or the price premium for renewable heat over heat that is produced from fossil fuels for residential heating. To that end, a nationwide contingent valuation survey of 1000 households was conducted during August 2018. Employing the model allowing for zero WTP values, the mean of the additional WTP or premium for one Gcal of heat produced using renewable energy rather than fossil fuels was estimated to be KRW 3636 (USD 3.2), which is statistically meaningful at the 1% level. This value represents the price premium for renewable heat over heat that is based on fossil fuels. Given that the heat price for residential heating was approximately KRW 73,000 (USD 65.1) per Gcal at the time of the survey, the additional WTP or the price premium corresponds to about 5% of that. When considering that the cost of producing renewable heat is still significantly higher than the cost of producing fossil fuels-based heat, more efforts to lower the production costs of renewable heat as well as financial support of the government for producing and supplying renewable heat are needed to ensure residential consumers’ acceptance of renewable heat.

Abstract The utilization of renewable energy sources for hydrogen production is attracting attention regarding a sustainable future energy system. The South Korean Government aims to develop and commercialize marine biological hydrogen (MBH) technology, which produces hydrogen using marine hyperthermophilic archaeons. The purpose of this study is to perform an economic evaluation of MBH technology based on households’ mean willingness to pay (WTP). The contingent valuation method and cost–benefit analysis are used as methodologies for detailed analysis. The results show that the mean WTP estimate is KRW 2508 (USD 2.14) per household per year, but the ratio of households with zero WTP is considerable. The net present value and the benefit–cost ratio of MBH technology development are KRW 169.04 billion (USD 144.35 million) and 5.65, respectively, proving the high economic feasibility of the technology. Several implications for future decisions on MBH technology are provided based on the results.

Abstract The Korean government has planned to expand a variety of waste-to-energy (WtE) facilities in order to reduce waste disposal, decrease the crude oil imports, and mitigate greenhouse gases (GHGs) emissions. One response to this concern is to measure the external benefits of WtE. To this end, this study attempts to apply a choice experiment (CE) to four attributes or types of benefits such as the improvement of energy security, reduction of GHG emissions, job creation, and extension of landfill life expectancy. A survey of 500 households was undertaken in Seoul, Korea. The trade-offs between price and the four attributes for selecting a preferred alternative are considered in the CE survey and a marginal willingness to pay (MWTP) estimate for each attribute is derived. A nested logit (NL) model is employed in this study, rather than a multi-nomial logit (MNL) model since two specification tests indicate that the NL model outperforms the MNL model. The estimation results for the NL model show that the MWTPs for a 1% increase in energy security, a 1% reduction in GHG emissions, the creation of 10,000 new jobs, and the doubling of landfill life expectancy as a result of expanding WtE facilities is estimated to be KRW 437 (USD 4.5), 1763 (1.5), 598 (0.5), and 89 (0.1) per household per month, respectively. The findings can provide policy-makers with useful information for evaluating and planning WtE policies and projects.

Abstract The Korean government set out the carbon dioxide (CO2) emissions reduction target as 30% below business-as-usual by 2020. The CO2 emissions trading scheme (ETS) was initiated in January 2015 to meet this target. We attempt to estimate the public's value of implementing the ETS for CO2 emissions reduction. We apply the contingent valuation (CV) method using the willingness to pay (WTP) data obtained from a national CV survey of 1000 randomly selected households. The survey was conducted via in-person interviews. Value judgments required of the respondents were within their abilities. The mean WTP to achieve the stated target of CO2 emissions reduction using ETS is estimated to be KRW 1873 (USD 1.66) per household per month, which is statistically significant at the 1% level. The aggregate national value amounts to KRW 409.2 billion (USD 363.4 million) per year. Thus, even though Korea has no obligations to cut emissions under the Kyoto protocol, the public is willing to bear a financial burden to implement the ETS. If its cost is less than this value, implementing the ETS can be socially profitable. The results of this study can serve as a basis for further policy discussions and decisions.

Diesel is an essential factor in industrial production and development, and thus its stable supply is a crucial element for economic growth. The supply shortage of diesel has massive economic costs, namely supply shortage costs. This paper attempts to apply input-output (I-O) analysis to measuring the supply shortage cost of industrial diesel in Korea by finding an optimal way of allocating the limited diesel resources to different sectors according to the objective of maximizing overall value-added. To this end, a static I-O framework is presented using a recently published I-O table. The results indicate that the marginal cost of unsupplied diesel ranges from KRW 716 (USD 0.65) to KRW 113,376 (USD 103.07) per liter and these costs depend not only on the shortage rate of each non-diesel sector but also on the level of its own final demand. The quantitative results are useful for policy-makers to set economic reliability standards, develop optimum curtailment levels and priorities, and plan curtailment strategies for diesel supply and demand.

The South Korean Government is trying to implement multi-purpose water uses of six hydropower reservoirs on the Han River to strengthen the linkage between water and energy. The expected environmental improvements are an improvement in flood control, an increase in the water supply for environmental improvement, an increase in the water supply for the instream flow requirement, and the abatement of air pollutants and greenhouse gas emissions. This article aims to value the four improvements by applying a choice experiment. For the purpose of reflecting the preference heterogeneity, by investigating the choice experiment data gathered from a survey of 1000 people, a Bayesian estimation of a mixed logit model is employed. The environmental benefits of a 1% improvement in flood control, a 1% increase in the water supply for environmental improvement, a 1% increase in the water supply for the instream flow requirement, and a 1% abatement of air pollutants and greenhouse gas emissions are estimated to be KRW 71 (USD 0.06), 51 (0.05), 28 (0.03), and 77 (0.07), respectively, per household per year. The expected improvements for the four attributes are 25.2%, 17.7%, 17.7%, and 1.0%, respectively. Thus, the expected environmental benefits are worth KRW 3265 (USD 2.96) per household per year and the national value amounts to KRW 63.74 billion (USD 57.77 million).