Public willingness-to-pay for electricity from domestic pumped-storage hydropower facilities: Evidence from South Korea

This study quantitatively assesses South Korean households’ willingness-to-pay (WTP) for electricity generated from domestically produced pumped-storage hydropower generation (PSHG) facilities. PSHG generation is a key technology for grid stability and renewable energy integration. Utilizing a nationwide contingent valuation survey of 1000 households and a robust one-and-one-half-bound spike model, the research estimates a mean WTP premium of KRW 27.07 (US' 1.95) per kWh, which is 17.2% above the standard residential tariff. The sample closely matches national demographic characteristics, ensuring generalizability. The results confirm consistent responses without systematic bias, and public acceptance for electricity from domestic PSHG facilities translates into substantive support for a domestic manufacturing policy. Policy implications include the need for sustained fiscal support, progressive pricing structures, and transparent stakeholder engagement to stimulate industrial capacity and technological autonomy. This study provides the first empirical valuation of consumer WTP for domestically produced PSHG facilities, yielding policy-relevant insights for South Korea and other nations pursuing renewable energy integration.