Abstract
Solid refuse fuel (SRF), which is made of combustible waste, has to pass the government's rigid standards. The Koreangovernment plans to enhance the ratio of biomass energy to total energy use from 3.17% in 2013 to 4.16% in 2020. Inparticular, the Korean government aims to raise the ratio of combustible waste converted into SRF from 16% in 2014to 100% in 2020 by increasing the number of facilities manufacturing and utilizing SRF. We attempt to analyze the externalbenefits of the expansion using the data obtained from a survey of 1,000 randomly selected households. A choiceexperiment, an economic technique, is employed here. The attributes considered in the study are ‘improvement of energysecurity’, ‘reduction of greenhouse gases emissions’, ‘extension of landfill life expectancy’, ‘job creation’, and ‘price’measured as an additional amount of monthly electricity and heating bills per household. The multinomial logit model,which requires the assumption of the ‘independence of irrelevant alternatives’, is applied. However, the assumption couldnot be satisfied in our data. Thus, we finally utilized a nested logit model that does not require the assumption. All theparameter estimates, except for ‘improvement of energy security’, in the utility function are statistically significant at the5% level. The estimation results show that the marginal willingness to pay (MWTP) for one year increase in landfill lifeexpectancy is estimated to be 218.8 won per household per year. MWTP for 100,000 tCO2 decrease in greenhouse gasesemission is calculated to be 171.9 won per household per year. MWTP for the creation of a new job is computed to be10.7 won per household per year.
| Translated title of the contribution | A Choice Experiment Study on the External Benefits of Expanding the Facilities Manufacturing and Utilizing Solid Refuse Fuel |
|---|---|
| Original language | Korean |
| Pages (from-to) | 81-89 |
| Number of pages | 9 |
| Journal | 한국폐기물자원순환학회지 |
| Volume | 34 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jan 2017 |