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http://dx.doi.org/10.5855/ENERGY.2015.24.1.164

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

Choi, Hyo-Yeon (Department of Economics, Korea University)
Ryu, Mun-Hyun (Korea Institute of Water and Environment)
Yoo, Seung-Hoon (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology)
Publication Information
Journal of Energy Engineering / v.24, no.1, 2015 , pp. 164-171 More about this Journal
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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