No abstract

Global warming concerns have emphasized the need for carbon neutrality. Improving the efficiency of the electricity industry is one method of reducing CO2 emissions. There is a demand response policy that trades the saved electricity through voluntary adjustment of consumption patterns. The introduction of real-time pricing (RTP) based on advanced power supply systems is a method of transitioning to a demand-oriented power system. However, as Korea's power supply system is a relatively less efficient single-rate system, it is necessary to improve the efficiency of demand management. To transition to a demand-oriented power system in Korea, consumer preference is first investigated. This study evaluates the willingness to pay (WTP) for the introduction of RTP in Korea. Based on a survey of 500 households using the contingent valuation method, the monthly average WTP was found to be 2465 Korean won per household ($2.18 per household), which is approximately 7.8% of the electricity rate. Several additional factors influencing WTP were analyzed. Further analysis indicated that it is more effective to establish infrastructure for introducing RTP in local areas with low average electricity rates. These findings are beneficial for the development of future demand response policies.

In most developed countries, such as the USA, the E.U., and East Asia, the importance of public infrastructure asset management has been stressed for a long time. Among the various types of public infrastructure, sewerage systems are one of the most cost-intensive facilities to manage. Sewerage systems are considered highly difficult to manage due to the undetermined level of service needed, different standards of user satisfaction, and the large gap of service understanding between experts and users. To address these issues, this study aims to define the appropriate target level of service improvement by combining consumers’ expected level of service and complaint data. In this study, the case of the inland flood management project in South Korea is investigated because of the global trend of increasing flood damage. The complaint data represent the frequency of flood damage in the area. Using the contingent valuation method, we found that people want to use 25% of their current monthly sewage bill on the management project. In addition, the results of this study demonstrate that people prefer to deal with the problems caused by old service infrastructure when it can be handled at a lower cost during early stages.