TY - JOUR
T1 - Quantifying drivers' acceptance of renewable fuel standard
T2 - Results from a choice experiment in South Korea
AU - Huh, Sung Yoon
AU - Kwak, Donghwan
AU - Lee, Jongsu
AU - Shin, Jungwoo
N1 - Publisher Copyright:
© 2014 Elsevier Ltd.
PY - 2014/10/1
Y1 - 2014/10/1
N2 - The production and use of renewable fuels in the transport sector are rapidly increasing. Renewable fuel standard (RFS) is a strong regulatory component and quantitative policy expected to have a significant market impact. In Korea, RFS implementation was agreed upon in July 2013 and will be enforced beginning in July 2015. Drivers' acceptance is the most important consideration for RFS introduction and sustainable implementation. This study analyzed Korean customer preferences for RFS and quantified their acceptance level according to policy design. A choice experiment was analyzed with a mixed logit model to reflect the heterogeneity of respondents' preferences. Respondents were relatively sensitive to the price increase, while other attributes had little effect on acceptance of RFS. Differences between the influences of attributes on drivers' acceptance should be considered when designing RFS implementation. Furthermore, it is recommended that the price of transportation fuels should be limited to an increase between KRW 10 and 20/liter (USD 8.879×10-3 and 1.776×10-2/liter) to ensure high acceptance level, secure a budget for infrastructure, and achieve substantial environmental improvement.
AB - The production and use of renewable fuels in the transport sector are rapidly increasing. Renewable fuel standard (RFS) is a strong regulatory component and quantitative policy expected to have a significant market impact. In Korea, RFS implementation was agreed upon in July 2013 and will be enforced beginning in July 2015. Drivers' acceptance is the most important consideration for RFS introduction and sustainable implementation. This study analyzed Korean customer preferences for RFS and quantified their acceptance level according to policy design. A choice experiment was analyzed with a mixed logit model to reflect the heterogeneity of respondents' preferences. Respondents were relatively sensitive to the price increase, while other attributes had little effect on acceptance of RFS. Differences between the influences of attributes on drivers' acceptance should be considered when designing RFS implementation. Furthermore, it is recommended that the price of transportation fuels should be limited to an increase between KRW 10 and 20/liter (USD 8.879×10-3 and 1.776×10-2/liter) to ensure high acceptance level, secure a budget for infrastructure, and achieve substantial environmental improvement.
KW - Choice experiment
KW - Market simulation
KW - Mixed logit model
KW - Renewable fuel standard
KW - Social acceptance
UR - http://www.scopus.com/inward/record.url?scp=84908071700&partnerID=8YFLogxK
U2 - 10.1016/j.trd.2014.08.006
DO - 10.1016/j.trd.2014.08.006
M3 - Article
AN - SCOPUS:84908071700
SN - 1361-9209
VL - 32
SP - 320
EP - 333
JO - Transportation Research Part D: Transport and Environment
JF - Transportation Research Part D: Transport and Environment
ER -
