TY - JOUR
T1 - Price premium for green hydrogen in South Korea
T2 - Evidence from a stated preference study
AU - Kim, Ju Hee
AU - Han, Su Mi
AU - Yoo, Seung Hoon
N1 - Publisher Copyright:
© 2023 Elsevier Ltd
PY - 2023/7
Y1 - 2023/7
N2 - South Korea has been seeking to advance the hydrogen economy since 2019. Currently, gray hydrogen is being used primarily in mobility, but the Government plans to gradually switch to green hydrogen. Data on the public's stated preferences on this has been collected and analyzed with the contingent valuation technique. More specifically, a price premium for consuming 1 kg of green hydrogen over 1 kg of gray hydrogen is estimated when fueling a hydrogen vehicle. In order to gather the data, with a sample size of 1000, face-to-face interviews with household visits, a field survey by a professional survey company, and a closed-ended questioning method were adopted. For the analysis of this data, a one-and-one-half-bound model and a spike model that is capable of handling zero observations were jointly applied. The estimated price premium was statistically significant, reaching KRW 1,990 (USD 1.6) per kg, 22.6% of the fueling price of gray hydrogen KRW 8,800 (USD 6.9). Various implications of these results are discussed. For example, a subsidy of at least USD 2.4 per kg is required, given that the additional cost of producing green hydrogen instead of gray hydrogen is around USD 4.0 per kg.
AB - South Korea has been seeking to advance the hydrogen economy since 2019. Currently, gray hydrogen is being used primarily in mobility, but the Government plans to gradually switch to green hydrogen. Data on the public's stated preferences on this has been collected and analyzed with the contingent valuation technique. More specifically, a price premium for consuming 1 kg of green hydrogen over 1 kg of gray hydrogen is estimated when fueling a hydrogen vehicle. In order to gather the data, with a sample size of 1000, face-to-face interviews with household visits, a field survey by a professional survey company, and a closed-ended questioning method were adopted. For the analysis of this data, a one-and-one-half-bound model and a spike model that is capable of handling zero observations were jointly applied. The estimated price premium was statistically significant, reaching KRW 1,990 (USD 1.6) per kg, 22.6% of the fueling price of gray hydrogen KRW 8,800 (USD 6.9). Various implications of these results are discussed. For example, a subsidy of at least USD 2.4 per kg is required, given that the additional cost of producing green hydrogen instead of gray hydrogen is around USD 4.0 per kg.
KW - Contingent valuation
KW - Gray hydrogen
KW - Green hydrogen
KW - Price premium
UR - https://www.scopus.com/pages/publications/85157960458
U2 - 10.1016/j.renene.2023.05.035
DO - 10.1016/j.renene.2023.05.035
M3 - Article
AN - SCOPUS:85157960458
SN - 0960-1481
VL - 211
SP - 647
EP - 655
JO - Renewable Energy
JF - Renewable Energy
ER -
