scholarly journals Residential Consumers’ Willingness to Pay Price Premium for Renewable Heat in South Korea

2019 ◽  
Vol 11 (5) ◽  
pp. 1234 ◽  
Author(s):  
Hee-Hoon Kim ◽  
Seul-Ye Lim ◽  
Seung-Hoon Yoo

Heat accounts for about one-third of the final energy use and it is mostly produced using fossil fuels in South Korea. Thus, heat production is an important source of greenhouse gas emissions. However, using renewable heat that is directly produced from renewable energy, such as bioenergy, geothermal, or solar heat can save energy and reduce greenhouse gas emissions, rather than transforming conventional fuel into heat. Therefore, an energy policy for renewable heat urgently needs to be established. It is such situations that this paper attempts to assess the consumers’ additional willingness to pay (WTP) or the price premium for renewable heat over heat that is produced from fossil fuels for residential heating. To that end, a nationwide contingent valuation survey of 1000 households was conducted during August 2018. Employing the model allowing for zero WTP values, the mean of the additional WTP or premium for one Gcal of heat produced using renewable energy rather than fossil fuels was estimated to be KRW 3636 (USD 3.2), which is statistically meaningful at the 1% level. This value represents the price premium for renewable heat over heat that is based on fossil fuels. Given that the heat price for residential heating was approximately KRW 73,000 (USD 65.1) per Gcal at the time of the survey, the additional WTP or the price premium corresponds to about 5% of that. When considering that the cost of producing renewable heat is still significantly higher than the cost of producing fossil fuels-based heat, more efforts to lower the production costs of renewable heat as well as financial support of the government for producing and supplying renewable heat are needed to ensure residential consumers’ acceptance of renewable heat.

2019 ◽  
Vol 11 (6) ◽  
pp. 1566 ◽  
Author(s):  
Ju-Hee Kim ◽  
Hyo-Jin Kim ◽  
Seung-Hoon Yoo

Due to air pollution and greenhouse gases issues associated with the use of fossil fuels and nuclear safety issues after the Fukushima accident, consumers are increasingly in favor of commodities produced using electricity generated from relatively expensive renewable energy (RE) rather than cheap fossil fuels or nuclear energy. This is usually called ‘RE100’. The objective of this study is to examine South Korean consumers’ willingness to pay (WTP) price premium for a RE100 commodity using the specific case of smartphones. We accomplished the purpose by conducting a contingent valuation survey of 1000 individuals in August 2018 and analyzing the data gathered from the survey. In addition, the spike model was applied to dealing with the zero WTP responses. Based on the analysis results, an average price premium was statistically significantly estimated to be KRW 11,699 (USD 10.5) for all respondents. This is worth 1.6% of the price for a conventional non-RE100 smartphone (KRW 750,000 or USD 673.9) and is higher than the cost increase (0.97%) when producing RE100 smartphones. Therefore, it can be seen that South Korean consumers have sufficient acceptance for RE100 smartphones.


2021 ◽  
Vol 98 ◽  
pp. 102973
Author(s):  
Bobin Wang ◽  
E.O.D. Waygood ◽  
Ricardo A. Daziano ◽  
Zachary Patterson ◽  
Matthew Feinberg

2019 ◽  
Vol 13 (3) ◽  
pp. 486-499
Author(s):  
Maryam Doroodi ◽  
Alireza Mokhtar

Purpose The purpose of this paper is to predict the amount of energy consumption by using a suitable statistical method in some sectors and energy carriers, which has shown a significant correlation with greenhouse gas emissions. Design/methodology/approach After studying the correlation between energy consumption rates in different sectors of energy consumption and some energy carriers with greenhouse gas distribution (CO2, SO2, NOX and SPM), the most effective factors on pollution emission will be first identified and then predicted for the next 20 years (2015 to 2004). Furthermore, to determine the appropriate method for forecasting, two approaches titled “trend analysis” and “double exponential smoothing” will be applied on data, collected from 1967 to 2014, and their capabilities in anticipating will be compared to each other contributing MSD, MAD, MAPE indices and also the actual and projected time series comparison. After predicting the energy consumption in the sectors and energy carriers, the growth rate of consumption in the next 20 years is also calculated. Findings Correlation study shows that four energy sectors (industry sector, agriculture, transportation and household-general-commercial) and two energy carriers (electricity and natural gas) have shown remarkable correlation with greenhouse gas emissions. To predict the energy consumption in mentioned sectors and carriers, it is proven that double exponential smoothing method is more capable in predicting. The study shows that among the demand sectors, the industry will account for the highest consumption rate. Electricity will experience the highest rate among the energy careers. In fact, producing this amount of electricity causes emissions of greenhouse gases. Research limitations/implications Access to the data and categorized data was one of the main limitations. Practical implications By identifying the sectors and energy carriers that have the highest consumption growth rate in the next 20 years, it can be said that greenhouse gas emissions, which show remarkable correlation with these sectors and carriers, will also increase dramatically. So, their stricter control seems to be necessary. On the other hand, to control a particular greenhouse gas, it is possible to focus on the amount of energy consumed in the sectors and carriers that have a significant correlation with this pollutant. These results will lead to more targeted policies to reduce greenhouse gas emissions. Social implications The tendency of communities toward industrialization along with population growth will doubtlessly lead to more consumption of fossil fuels. An immediate aftermath of burning fuels is greenhouse gas emission resulting in destructive effects on the environment and ecosystems. Identifying the factors affecting the pollutants resulted from consumption of fossil fuels is significant in controlling the emissions. Originality/value Such analyses help policymakers make more informed and targeted decisions to reduce greenhouse gas emissions and make safer and more appropriate policies and investment.


2020 ◽  
Vol 66 (No. 10) ◽  
pp. 447-457
Author(s):  
Nicoleta Mihaela Florea ◽  
Roxana Maria Badircea ◽  
Ramona Costina Pirvu ◽  
Alina Georgiana Manta ◽  
Marius Dalian Doran ◽  
...  

According to the objectives of the European Union concerning the climate changes, Member States should take all the necessary measures in order to reduce the greenhouse gas emissions. The aim of this study is to identify the causality relations between greenhouse gases emissions, added value from agriculture, renewable energy consumption, and economic growth based on a panel consisting of 11 states from the Central and Eastern Europe (CEECs) in the period between 2000 and 2017. The Autoregressive Distributed Lag (ARDL) method was used to estimate the long-term relationships among the variables. Also a Granger causality test based on the ARDL – Error Correction Model (ECM) and a Pairwise Granger causality test were used to identify the causality relationship and to detect the direction of causality among the variables. The results obtained reveal, in the long term, two bidirectional relationships between agriculture and economic growth and two unidirectional relationships from agriculture to greenhouse gas emissions and renewable energy. In the short term, four unidirectional relationships were found from agriculture to all the variables in the model and one unidirectional relationship from renewable energy to greenhouse gas emissions.


Processes ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 457
Author(s):  
Sergio Peres ◽  
Eduardo Loureiro ◽  
Humberto Santos ◽  
Fabio Vanderley e Silva ◽  
Alexandre Gusmao

Due to climate change problems caused by greenhouse gas emissions generated by fossil fuels and from waste disposition, fuel alternatives for power generation are being extensively researched. Currently, in Brazil and in many countries, wood waste is disposed in landfills. However, due to lignin, one of the major constituents of biomass, which prevents wood waste from suffering microbial degradation, there is no significant mass degradation, even over decades, when landfilled. Hence, landfilling is not a solution to discard wood waste. Hence, one of the solutions to get rid of the great amount of wood waste is to use it as feedstock in waste-to-electricity (WTE) projects. WTE projects are in high demand in the world, as they can replace fossil fuels and they reduce two major environmental problems (greenhouse gas emissions due to the use of fossil fuels and the accumulation of waste in landfills), while generating biofuels and/or electricity. One of the residues that can be used in WTE projects is biomass residue from construction sites (CCbiowaste). CCbiowaste could be converted into gaseous biofuels through pyrolysis or gasification. These gaseous biofuels can be used in Otto engines connected to an electricity generator (gensets) to produce electricity and/or heat (cogeneration applications). Hence, the objective of this research was to characterize (physically, chemically, and energetically) civil construction biomass wastes (CCbiowaste), produced in a residential building construction site in Recife, Brazil, and to use these wastes in a bench-scale gasifier to produce gaseous biofuels at the temperatures of 700 °C, 800 °C, and 900 °C. The gaseous fuels were collected in the gasifier and analyzed in a gas chromatograph equipped with a thermal conductivity detector (TCD) to determine their composition and heating values. The lower heating value (LHV) results varied from 8.07 MJ∙m−3 to 10.74 MJ∙m−3 for 700 °C to 900 °C gasification temperature. These gaseous fuels were tested in an adapted Otto cycle engine connected to an electricity generator to prove the feasibility of this application. The highest total energy per ton of biomass was obtained for mixed wood and Pinus at 900 °C, with approximately 13 GJ∙ton−1. Hence, the use of CCbiowaste can become an option for the reuse of wasted wood instead of simply dumping in a landfill.


2020 ◽  
Vol 10 (3) ◽  
pp. 837
Author(s):  
Matteo Prussi

Anthropogenic greenhouse gas emissions are dramatically influencing the environment, and research is strongly committed in proposing alternatives, mainly based on renewable energy sources [...]


2020 ◽  
Vol 10 (20) ◽  
pp. 7112
Author(s):  
Valeria Todeschi ◽  
Guglielmina Mutani ◽  
Lucia Baima ◽  
Marianna Nigra ◽  
Matteo Robiglio

Urban rooftops are a potential source of water, energy, and food that contribute to make cities more resilient and sustainable. The use of smart technologies such as solar panels or cool roofs helps to reach energy and climate targets. This work presents a flexible methodology based on the use of geographical information systems that allow evaluating the potential use of roofs in a densely built-up context, estimating the roof areas that can be renovated or used to produce renewable energy. The methodology was applied to the case study of the city of Turin in Italy, a 3D roof model was designed, some scenarios were investigated, and priorities of interventions were established, taking into account the conditions of the urban landscape. The applicability of smart solutions was conducted as a support to the review of the Building Annex Energy Code of Turin, within the project ‘Re-Coding’, which aimed to update the current building code of the city. In addition, environmental, economic, and social impacts were assessed to identify the more effective energy efficiency measures. In the Turin context, using an insulated green roof, there was energy saving in consumption for heating up to 88 kWh/m2/year and for cooling of 10 kWh/m2/year, with a reduction in greenhouse gas emissions of 193 tCO2eq/MWh/year and 14 tCO2eq/MWh/year, respectively. This approach could be a significant support in the identification and promotion of energy efficiency solutions to exploit also renewable energy resources with low greenhouse gas emissions.


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