The government is considering the introduction of sector coupling as a way to compensate for the instability of the power system and solve the power generation constraints caused by the shortage of the power grid. In particular, the government intends...
The government is considering the introduction of sector coupling as a way to compensate for the instability of the power system and solve the power generation constraints caused by the shortage of the power grid. In particular, the government intends to introduce Power-to-Gas (P2G), which uses surplus power to generate hydrogen. This study seeks to evaluate public acceptance of introducing P2G by using contingent valuation method (CV). For this purpose, CV survey was conducted through person-to-person interviews targeting 1,000 households in South Korea. At this time, the annual income tax per household and the one-and-one-half bounded dichotomous choice model (OOHB) were adopted as payment vehicle and willingness to pay (WTP) elicitation methods, respectively. In addition, a single bounded model (SB) is applied to examine the response effects that may occur in the OOHB model. In both models, the spike model is used to handle many zero WTPs. As a result, the estimation results of the SB spike model were adopted and the average annual WTP per household for the P2G project was estimated to be KRW 5,317. The total WTP for the project was derived at KRW 117.1 billion per year, and the present value of the total benefits generated over the decade totaled KRW 926.5 billion as of 2021. Comparing the total benefit derived in this study with the cost involved in the project to be evaluated, the benefit/cost ratio is calculated as 1.99. Therefore, the project was found to secure economic feasibility.