The Demand Forecast for Diesel Passenger Cars and the Change of Air Quality in Seoul:A Stated Preference ApproachJae-Hong Kim*Seung-Il Lee**John Preston***Ulsan University*University of Seoul**University of Southampton***This study estimates the elast...
The Demand Forecast for Diesel Passenger Cars and the Change of Air Quality in Seoul:A Stated Preference ApproachJae-Hong Kim*Seung-Il Lee**John Preston***Ulsan University*University of Seoul**University of Southampton***This study estimates the elasticities of fuel price and sales price to the diesel car demand after the permission of diesel passenger cars in 2005, using a conjoint analysis based on the stated preference survey from 500 respondents in Seoul, Korea. On the basis of the estimated elasticities, it is forecasted that the market share of the petrol cars decreases 19.2%, those of the diesel passenger cars, the diesel RV and the LPG cars increase 8.5%, 7.3%, and 3.4%, respectively, during the period of 2004 to 2010. Although the total number of passenger cars increases 22.6% during the same period, the total quantity of NOx exhaust drops 2.7% and that of CO2 increases only 7.2% due to the reinforced emission standards after 2006. This indicates that the permission of diesel passenger cars does not aggravate the air quality in Seoul so seriously as expected. However, PM10 increases 45.7% due to the increase of the market share of the diesel cars despite the application of EURO IV standard in 2006. This suggests that the emission standard of PM10 should be more strengthened in order to sustain the air quality.