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http://dx.doi.org/10.1016/j.net.2015.12.012

Can Renewable Energy Replace Nuclear Power in Korea? An Economic Valuation Analysis  

Park, Soo-Ho (Korea Institute for Advancement of Technology, Korea Technology Center)
Jung, Woo-Jin (Graduate School of Information, Yonsei University)
Kim, Tae-Hwan (School of Business, Hanyang University)
Lee, Sang-Yong Tom (School of Business, Hanyang University)
Publication Information
Nuclear Engineering and Technology / v.48, no.2, 2016 , pp. 559-571 More about this Journal
Abstract
This paper studies the feasibility of renewable energy as a substitute for nuclear and energy by considering Korean customers' willingness to pay (WTP). For this analysis, we use the contingent valuation method to estimate the WTP of renewable energy, and then estimate its value using ordered logistic regression. To replace nuclear power and fossil energy with renewable energy in Korea, an average household is willing to pay an additional 102,388 Korean Won (KRW) per month (approx. US $85). Therefore, the yearly economic value of renewable energy in Korea is about 19.3 trillion KRW (approx. US $16.1 billion). Considering that power generation with only renewable energy would cost an additional 35 trillion KRW per year, it is economically infeasible for renewable energy to be the sole method of low-carbon energy generation in Korea.
Keywords
Contingent Valuation Method; Nuclear Power; Ordered Logistic Regression; Renewable Energy; Willingness to Pay;
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