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Development of the Performance Indicator for the Mitigation of Greenhouse Gas Emissions from Products - Estimation of Social Cost for Global Warming Impact using the Conjoint Analysis -  

Jeong, In-Tae (School of Environmental Engineering, Ajou University)
Lee, Kun-Mo (School of Environmental Engineering, Ajou University)
Song, Jong-Sung (Samsung Electronics LCD Business)
Publication Information
Journal of Korean Society of Environmental Engineers / v.30, no.12, 2008 , pp. 1245-1254 More about this Journal
Abstract
Proposing a method for the estimation of the social cost for global warming impact (external cost) is the aim of this paper. Both the endpoint approach and conjoint analysis were applied to estimating the social cost for global warming. The endpoint approach was used to assess the damage on the safeguard subjects by global warming due to the emission of greenhouse gases into the atmosphere. The conjoint analysis was used to estimate the economic values for safeguard subjects which measure the social preferences and willingness to pay (WTP) on safeguard subjects. The economic values of human health and social asset were estimated at 62,261,700 Won / DALY (yr) and 10,000 Won / 10,000 Won, respectively. Moreover, cost factors of GHGs were calculated by multiplying the damage factor which is quantified the unit damage on safeguard subject and the economic value. In the case of CO$_2$, the cost factor was calculated at 13.52 Won / kg (13,520 Won / ton). External cost of products or services can be calculated by multiplying the GHG inventory result of products or services by the cost factor of each GHG. inventory.
Keywords
Greenhouse Gases; Global Warming; Social Cost (External Cost); Safeguard Subject; Endpoint Approach; Willingness to Pay (WTP); Conjoint Analysis; Cost Factor;
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