Economic evaluation of willingness to pay for natural gas supply reliability in Korea

Jeongmin Shin, Solji Nam, Jaeho Jeong and Jungwoo Shin

Utilities Policy, 2024, vol. 91, issue C

Abstract: This study evaluates the economic value and supports infrastructure development of constructing a circular network to improve natural gas supply stability. This study applies a double-bounded dichotomous choice model and shows that households and commercial users are willing to pay an additional 2.97% and 1.19% of their monthly gas bill, respectively. This study also shows the impact of gas supply understanding and population density on willingness to pay (WTP) for both sectors. Scenario analysis is conducted to analyze the cost-benefit ratio for a hypothetical region, which may be useful in setting up new business plans.

Keywords: Gas supply reliability; Circular network construction; Household use; Commercial use (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:91:y:2024:i:c:s0957178724001267

DOI: 10.1016/j.jup.2024.101833

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