Are the public ready to bear the costs of phasing out coal-fired power plants? An economic feasibility analysis

The phasing-out of coal-fired power generation is a critical policy imperative in the energy system transition towards climate change mitigation. This research examines whether the public is willing to share the costs that will arise from the phasing-out of coal-fired power generation. To this end, this study analyzes the public's willingness to pay for policies aimed at reducing coal-fired power generation and assesses their economic feasibility. Stated preference data from 1000 Korean households nationwide are analyzed using the contingent valuation method and cost-benefit analysis (CBA). The results indicate that households are willing to pay an average of KRW 4514 (USD 3.45) with a 95% confidence interval of [KRW 4,087, KRW 5017] per month in additional electricity fees for the next five years to implement compensation and support measures for the phasing-out of coal-fired power plants. The results of the CBA, including sensitivity analysis, suggest that the implementation of support and compensation policies for coal power phasing-out may not be economically feasible. The Korean public is not yet fully prepared to bear the costs associated with the phase-out of coal-fired power generation, and either increased electricity tariffs or excessive government investment for this process could provoke considerable controversy.