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      • Increasing consumer participation rates for green pricing programs: A choice experiment for South Korea

        Bae, Jeong Hwan,Rishi, Meenakshi Elsevier 2018 ENERGY ECONOMICS Vol.74 No.-

        <P><B>Abstract</B></P> <P>This study examines the factors that can increase consumer participation rates in green pricing programs by conducting a choice experiment in South Korea. Estimation results were obtained from a conditional logit, conditional logit with interaction terms, random parameter logit, random parameter logit with correlation, and individual-level coefficient models. A novelty of our analysis was the consideration of monetary and non-monetary incentives as factors influencing consumer uptake in green pricing programs. The estimation results show that increased consumer participation in green pricing programs is positively linked with green energy sources that produce fewer externalities, more jobs, and monetary incentives such as tax credits or green mileage. However, there is an inverted U-shaped relationship between participation rates and the share of green electricity in total electricity supply. Mean willingness to pay for fuel cells is highest, followed by solar and wind energy. Estimation from the random parameter logit with allowing for correlations among random coefficients of attributes reveals that consumers are divided into ‘green (pro-environment) consumers’ and ‘blue (growth-oriented) consumers’. Green consumers prefer a higher green electricity share, solar or fuel cell to wind, a greater proximity of green power plants to their homes, and green mileage or green parks to tax credits. In comparison, ‘blue consumers’ favor a lower green electricity share, green power plants that are far from their homes, and monetary incentives rather than non-monetary incentives. The results of this study suggest guidelines for the design of successful green pricing programs. Green pricing programs that are designed with information on types of green energy sources, consider the distance of power plants to consumers' residences, focus on the share of green electricity, and incorporate monetary incentives are likely to have increased consumer participation rates.</P> <P><B>Highlights</B></P> <P> <UL> <LI> Green energy with fewer externality leads to higher adoption of green tariff. </LI> <LI> Inverted U shape exists between green energy share and adoption of green tariff. </LI> <LI> WTP is highest for fuel cell, followed by solar and wind energy. </LI> <LI> Tax credit and green mileage incentives increase adoption of green pricing scheme. </LI> <LI> There are pro-environmental and growth-oriented consumers for green electricity. </LI> </UL> </P>

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      • Determinants of CO<sub>2</sub> Emissions for Post-Soviet Independent Countries

        ( Dmitriy D. Li ),( Jeong Hwan Bae ),( Meenakshi Rishi ) 한국환경경제학회·한국자원경제학회(구 한국환경경제학회) 2015 한국환경경제학회 학술발표논문집 Vol.2015 No.하계

        We analyze the determinants of Carbon dioxide (CO<sub>2</sub>) emissions for 15 Post-Soviet Union Independent (PSI) countries given their recent transition to market-based economies and their relatively high levels of corruption. We examine the direct and indirect effects of economic growth on CO<sub>2</sub> emissions for the PSI countries using a system generalized method of moment (GMM) approach to account for simultaneity among corruption, growth, and CO<sub>2</sub> emissions. We find a linear relationship between GDP and CO<sub>2</sub> emissions. Furthermore, GDP influences CO<sub>2</sub> emissions directly, but also indirectly through its impact on corruption. Similarly, corruption affects CO<sub>2</sub> emissions directly, as well as indirectly through its impact on GDP. We find that political democracy and economic freedom increase CO<sub>2</sub> emissions indirectly through their impact on economic growth. Improved energy efficiency and the EU climate policy reduce CO<sub>2</sub> emissions, while FDI inflows tend to increase CO<sub>2</sub> emissions. These findings suggest more investments in energy efficient technologies, reforestation, and emulating EU policies on emission abatement.

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