• Journal of Energy Engineering
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• v.25 no.4
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• pp.93-102
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• 2016

Vehicle-to-Grid (V2G) system, bi-direction power trading technology, enables drivers possessing electric vehicle to sell the spare electricity charged in the vehicle to power distribution company. The drivers gain profit by charging electricity in the day time of high electricity rate. In this regard, the government is preparing the policies of building and supporting V2G infrastructure and demanding the potential consumers' preference for the V2G system. This paper attempts to analyze the consumers' preference using the data from obtained a survey of randomly selected 1,000 individuals. To this end, choice experiment, an economic technique, is employed here. The attributes considered in the study are residual amount of electricity, electricity trading hours, required plug-in time, and price measured as an amount additional to current gasoline vehicle price. The multinomial logit model, which requires the assumption of 'independence of irrelevant alternatives', is applied but the assumption could not be satisfied in our data. Thus, we finally utilized nested logit model which does not require the assumption. All the parameter estimates in the utility function are statistically significant at the 10% level. The estimation results show that the marginal willingness to pay (MWTP) for one hour increase in electricity trading hours is estimated to be KRW 1,601,057. On the other hand, a one percent reduction in residual amount of electricity and one hour reduction in required plug-in time in V2G system are computed to be KRW -91,911 and -470,619, respectively. The findings can provide policy makers with useful information for decision-making about introducing and managing V2G system.