Public Willingness to Pay for Increasing Photovoltaic Power Generation: The Case of Korea

Renewable energy receives particular attention in Korea because of concerns about climate change and scarce traditional energy resources. The government plans to enhance photovoltaic (PV) power’s share of total power generation from 0.5% in 2014 to 10.1% in 2029. The present study tries to look into the public willingness to pay (WTP) for increasing PV power generation, applying the contingent valuation approach. A survey of 1000 interviewees was carried out in Korea. The observations of the WTP responses were gathered using a dichotomous choice question and analyzed employing the mixture model. The mean household WTP estimate is obtained as KRW 2183 (USD 1.9) per month, which possesses statistical significance. The total yearly WTP expanded to the population is worth KRW 476.9 billion (USD 423.1 million). These values can provide a useful basis for policy-making and decision-making about the economic feasibility of increasing PV power generation