A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Willingness to Pay Price Premium for Smartphones Produced Using Renewable Energy
Due to air pollution and greenhouse gases issues associated with the use of fossil fuels and nuclear safety issues after the Fukushima accident, consumers are increasingly in favor of commodities produced using electricity generated from relatively expensive renewable energy (RE) rather than cheap fossil fuels or nuclear energy. This is usually called ‘RE100’. The objective of this study is to examine South Korean consumers’ willingness to pay (WTP) price premium for a RE100 commodity using the specific case of smartphones. We accomplished the purpose by conducting a contingent valuation survey of 1000 individuals in August 2018 and analyzing the data gathered from the survey. In addition, the spike model was applied to dealing with the zero WTP responses. Based on the analysis results, an average price premium was statistically significantly estimated to be KRW 11,699 (USD 10.5) for all respondents. This is worth 1.6% of the price for a conventional non-RE100 smartphone (KRW 750,000 or USD 673.9) and is higher than the cost increase (0.97%) when producing RE100 smartphones. Therefore, it can be seen that South Korean consumers have sufficient acceptance for RE100 smartphones.
Willingness to Pay Price Premium for Smartphones Produced Using Renewable Energy
Due to air pollution and greenhouse gases issues associated with the use of fossil fuels and nuclear safety issues after the Fukushima accident, consumers are increasingly in favor of commodities produced using electricity generated from relatively expensive renewable energy (RE) rather than cheap fossil fuels or nuclear energy. This is usually called ‘RE100’. The objective of this study is to examine South Korean consumers’ willingness to pay (WTP) price premium for a RE100 commodity using the specific case of smartphones. We accomplished the purpose by conducting a contingent valuation survey of 1000 individuals in August 2018 and analyzing the data gathered from the survey. In addition, the spike model was applied to dealing with the zero WTP responses. Based on the analysis results, an average price premium was statistically significantly estimated to be KRW 11,699 (USD 10.5) for all respondents. This is worth 1.6% of the price for a conventional non-RE100 smartphone (KRW 750,000 or USD 673.9) and is higher than the cost increase (0.97%) when producing RE100 smartphones. Therefore, it can be seen that South Korean consumers have sufficient acceptance for RE100 smartphones.
Willingness to Pay Price Premium for Smartphones Produced Using Renewable Energy
Ju-Hee Kim (author) / Hyo-Jin Kim (author) / Seung-Hoon Yoo (author)
2019
Article (Journal)
Electronic Resource
Unknown
Metadata by DOAJ is licensed under CC BY-SA 1.0
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| DOAJ | 2019
| British Library Online Contents | 2018
| British Library Online Contents | 2018