Households’ willingness to pay for developing marine bio-hydrogen technology: The case of South Korea

Joseph Kim; Hye Jeong Lee; Sung Yoon Huh; Seung Hoon Yoo

doi:10.1016/j.ijhydene.2019.03.202

Households’ willingness to pay for developing marine bio-hydrogen technology: The case of South Korea

Joseph Kim, Hye Jeong Lee, Sung Yoon Huh, Seung Hoon Yoo

Dept. of Future Energy Convergence

Seoul National University of Science and Technology (SNUST)

Research output: Contribution to journal › Article › peer-review

16 Scopus citations

Abstract

The utilization of renewable energy sources for hydrogen production is attracting attention regarding a sustainable future energy system. The South Korean Government aims to develop and commercialize marine biological hydrogen (MBH) technology, which produces hydrogen using marine hyperthermophilic archaeons. The purpose of this study is to perform an economic evaluation of MBH technology based on households’ mean willingness to pay (WTP). The contingent valuation method and cost–benefit analysis are used as methodologies for detailed analysis. The results show that the mean WTP estimate is KRW 2508 (USD 2.14) per household per year, but the ratio of households with zero WTP is considerable. The net present value and the benefit–cost ratio of MBH technology development are KRW 169.04 billion (USD 144.35 million) and 5.65, respectively, proving the high economic feasibility of the technology. Several implications for future decisions on MBH technology are provided based on the results.

Original language	English
Pages (from-to)	12907-12917
Number of pages	11
Journal	International Journal of Hydrogen Energy
Volume	44
Issue number	26
DOIs	https://doi.org/10.1016/j.ijhydene.2019.03.202
State	Published - 21 May 2019

Keywords

Contingent valuation
Cost–benefit analysis
Marine bio-hydrogen
Public value
Willingness to pay

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.ijhydene.2019.03.202

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@article{09df75f7711e44c2ba3ae17d9f4edb8b,

title = "Households{\textquoteright} willingness to pay for developing marine bio-hydrogen technology: The case of South Korea",

abstract = "The utilization of renewable energy sources for hydrogen production is attracting attention regarding a sustainable future energy system. The South Korean Government aims to develop and commercialize marine biological hydrogen (MBH) technology, which produces hydrogen using marine hyperthermophilic archaeons. The purpose of this study is to perform an economic evaluation of MBH technology based on households{\textquoteright} mean willingness to pay (WTP). The contingent valuation method and cost–benefit analysis are used as methodologies for detailed analysis. The results show that the mean WTP estimate is KRW 2508 (USD 2.14) per household per year, but the ratio of households with zero WTP is considerable. The net present value and the benefit–cost ratio of MBH technology development are KRW 169.04 billion (USD 144.35 million) and 5.65, respectively, proving the high economic feasibility of the technology. Several implications for future decisions on MBH technology are provided based on the results.",

keywords = "Contingent valuation, Cost–benefit analysis, Marine bio-hydrogen, Public value, Willingness to pay",

author = "Joseph Kim and Lee, \{Hye Jeong\} and Huh, \{Sung Yoon\} and Yoo, \{Seung Hoon\}",

note = "Publisher Copyright: {\textcopyright} 2019 Hydrogen Energy Publications LLC",

year = "2019",

month = may,

day = "21",

doi = "10.1016/j.ijhydene.2019.03.202",

language = "English",

volume = "44",

pages = "12907--12917",

journal = "International Journal of Hydrogen Energy",

issn = "0360-3199",

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T1 - Households’ willingness to pay for developing marine bio-hydrogen technology

T2 - The case of South Korea

AU - Kim, Joseph

AU - Lee, Hye Jeong

AU - Huh, Sung Yoon

AU - Yoo, Seung Hoon

PY - 2019/5/21

Y1 - 2019/5/21

N2 - The utilization of renewable energy sources for hydrogen production is attracting attention regarding a sustainable future energy system. The South Korean Government aims to develop and commercialize marine biological hydrogen (MBH) technology, which produces hydrogen using marine hyperthermophilic archaeons. The purpose of this study is to perform an economic evaluation of MBH technology based on households’ mean willingness to pay (WTP). The contingent valuation method and cost–benefit analysis are used as methodologies for detailed analysis. The results show that the mean WTP estimate is KRW 2508 (USD 2.14) per household per year, but the ratio of households with zero WTP is considerable. The net present value and the benefit–cost ratio of MBH technology development are KRW 169.04 billion (USD 144.35 million) and 5.65, respectively, proving the high economic feasibility of the technology. Several implications for future decisions on MBH technology are provided based on the results.

AB - The utilization of renewable energy sources for hydrogen production is attracting attention regarding a sustainable future energy system. The South Korean Government aims to develop and commercialize marine biological hydrogen (MBH) technology, which produces hydrogen using marine hyperthermophilic archaeons. The purpose of this study is to perform an economic evaluation of MBH technology based on households’ mean willingness to pay (WTP). The contingent valuation method and cost–benefit analysis are used as methodologies for detailed analysis. The results show that the mean WTP estimate is KRW 2508 (USD 2.14) per household per year, but the ratio of households with zero WTP is considerable. The net present value and the benefit–cost ratio of MBH technology development are KRW 169.04 billion (USD 144.35 million) and 5.65, respectively, proving the high economic feasibility of the technology. Several implications for future decisions on MBH technology are provided based on the results.

KW - Contingent valuation

KW - Cost–benefit analysis

KW - Marine bio-hydrogen

KW - Public value

KW - Willingness to pay

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DO - 10.1016/j.ijhydene.2019.03.202

M3 - Article

AN - SCOPUS:85064281915

SN - 0360-3199

VL - 44

SP - 12907

EP - 12917

JO - International Journal of Hydrogen Energy

JF - International Journal of Hydrogen Energy

IS - 26

ER -

Households’ willingness to pay for developing marine bio-hydrogen technology: The case of South Korea

Abstract

Keywords

UN SDGs

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