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ID: 150783

Korean public's preference for supply security of oil and gas and the impact of protest bidders / Kim, Jihyo; Kim, Jinsoo ; Yoon Kyung

Kim, Jihyo	Journal Article
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Summary/Abstract

The Korean governmental support for supply security of oil and gas via overseas exploration and production (E&P) projects are publicly criticized because of some poor projects lacking of economic feasibility, even though it should be expanded from a long-term perspective. Applying the contingent valuation, this study investigates the Korean public's preferences for governmental support for overseas oil and gas E&P projects. The result shows that the governmental support for overseas E&P projects rather decreases public utility. The primary reason behind this utility decrease is that some respondents protested to bid because of their resistance toward tax increase without guaranteeing the efficient government support. This result implies that simple tax increases for expansion of the governmental support may bring about public's strong opposition. In order to overcome this public opposition, this study suggests that it is necessary to arouse public understanding of the necessity of overseas oil and gas E&P projects.

Key Words

Contingent Valuation ; Supply Security Of Oil and Gas ; Overseas E&P Projects ; Public Preference ; Protest Response

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ID: 118847

Renewable electricity as a differentiated good? the case of the / Kim, Jihyo; Park, Jooyoung; Kim, Jinsoo; Heo, Eunnyeong

Kim, Jihyo	Journal Article
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Publication

2013.

Summary/Abstract

This paper examines the willingness for Korean consumers to pay a premium for renewable electricity under a differentiated good framework by applying the contingent valuation method. Korean consumers have been required to pay for their use of renewable electricity as of 2012. First, we find that Korean consumers recognise renewable electricity as a differentiated good from traditional electricity generated from fossil fuels or nuclear energy. The mean willingness to pay to use renewable electricity is USD 1.26 per month. Second, we confirm the existence of perfect substitution relationships among variant renewable technologies, which suggests that Korean consumers do not perceive them as differentiated goods. One reason for this perception is that Korean consumers are more inclined to favour economic feasibility over sustainability or the availability of the resource stock when choosing between renewable technology types. In sum, we can say that Korean consumers recognise renewable electricity as a differentiated good but that they do not differentiate between variant renewable technologies. Thus, the imposition of the cost of renewable electricity on consumers in the form of increased electricity charges would be acceptable to consumers as long as any price rise properly reflects their preferences.

Key Words

Renewable Electricity ; Willingness to Pay ; Substitution Relationships

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