• Environmental and Resource Economics Review
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• v.16 no.4
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• pp.873-900
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• 2007

Non-market valuation studies tend to assume that individual households have homogeneous preferences for a non-market good to value. However, since the preferences for non-market goods, especially environmental goods are more likely to be heterogeneous by nature, it may be more appropriate to assume heterogeneous preferences for non-market goods, which may in turn may lead to reduced biases in the WTP estimation. This study investigate the extent to which individual households have heterogeneous preferences for reduced concentrations of radon, a radioactive indoor air pollutant, for road safety, and for nuclear power safety. We also analyze the effect of heterogeneity assumption on the results of model and WTP estimation. Using the choice experiments and mixed logit models, we found that allowing for heterogeneous preferences improved model fitness and that there existed heterogeneous preferences for both reduced radon concentration and road safety, albeit not for nuclear power safety. The mean WTP for reduced radon concentrations and road safety increased by factors of 2.44 and l.74 respectively with the models allowing for heterogeneous preferences.

• Environmental and Resource Economics Review
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• v.21 no.4
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• pp.921-945
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• 2012

Conditional Logit (CL) model is widely used since its model estimation and interpretation of results of the model is relatively easy, on the other hand, it has the limit of preference heterogeneity of respondents being not fully considered. In this study we used the two models, Mixed Logit (ML) Model and Latent Class Model (LCM) to explain preference heterogeneity of respondents for protection for Boryeong Dam wetland. As a result of the examination for heterogeneity in Boryeong city and six metropolitan areas, we found there was significant difference between two regions. While there was explicit preference heterogeneity within respondents in Boryeong city, we found little heterogeneity within respondents in six metropolitan areas. Thus in the case of six metropolitan areas, CL model can be used for parameter estimation while in the case of Boryeong city, WTP estimates are based on parameter estimates from ML model to reflect the heterogeneity within respondents. Additionally, ML model with interaction and 2-class LCM for respondents in Boryeong city were used to explain the sources of the heterogeneity. The ML model with interaction has advantage of explaining individual unobserved heterogeneity. However The comarison between these two models reflects the fact that LCM provided added information that was not conveyed in the ML model with interaction. Thus, Preference heterogeneity within respondents in this study may be better explained by class level through LCM rather than indiviual level through ML model.

• Current Photovoltaic Research
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• v.10 no.4
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• pp.121-132
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• 2022

The need for floating photovoltaic is being emphasized to expand renewable energy but low residents' acceptance is a major obstacle to the deployment of floating photovoltaic. Using the discrete choice experiment, this study analyzed the preferences for community-based floating photovoltaic projects and proposed a method to increase the residents' acceptance of floating photovoltaic projects. The estimates of the marginal willingness to accept (MWTA) of the distance, the coverage ratio, the landscape, the project owner (public institution), and the project owner (large company) are -0.69%p/km, 0.13%p/%p, -0.57%p, -2.95%p, -1.73%p, respectively. According to the result of simulation analysis, the residents' acceptance is significantly higher when the project is operated by a public institution, with a choice probability of 58%, than when the project is operated by a private company, with a choice probability of 29%, 12% for a large and small company, respectively. In addition, as a result of the analysis of the expected returns, the results show that the closer the distance from the residence to the power plant, the higher the expected return.

• Environmental and Resource Economics Review
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• v.30 no.3
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• pp.365-393
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• 2021

Using the Choice Experiment Method, this paper identified whether subsidy to the household around landfil in Seoul metropolitan area is being provided corresponding to the scale of the environmental damage. Since 2001, the subsidy program has been operating for nearly 20 years to compensate for various environmental damage (foul odor, noise, air pollution, water pollution, etc.) from landfill site in the metropolitan area, but it is not clear on what ground the subsidy is allocated. This paper estimated the marginal WTP by attribute (odor, noise, air pollution, and water pollution) based on mixed logit model and compared them with current subsidy level per household in each town. As a result of the comparison, it was found that the subsidy for each town was not allocated in proportion to the amount of the marginal WTP for each household in the corresponding town. In addition, this paper constructs a level-by-level scenario for environmental improvement attributes and compares economic benefits and current subsidy levels. As a result, the current subsidy level is insufficient compared to the level at which environmental damage is completely eliminated, but excessive subsidy is allocated compared to partial improvement levels.

• Environmental and Resource Economics Review
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• v.27 no.4
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• pp.695-723
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• 2018

Recently, extreme weather due to climate change has become more frequent, and increase of fine dust has worsen air quality in Korea. Therefore, not only negative perception on coal-fired power generation is dominant, but also the social acceptance of nuclear power generation declines. This study aims at deriving consumer preferences on the mid and long term power mix with various energy sources. Willingness to pay for each generation source was estimated and the preference heterogeneity of consumers was examined by using mixed logit and latent class models. Mixed logit estimation results show that the preference heterogeneity of consumers is especially large for the nuclear power relative to renewable or coal energy. According to the estimation results from the latent class model, group 1 prefers renewable energy while group 2 prefers coal energy. Group 3 shows lexicographic preference which means restricted rationality. As for the policy implication, it is necessary to understand the preference heterogeneity of consumer groups in planning the mid to long term power mix.

• Environmental and Resource Economics Review
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• v.30 no.1
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• pp.49-77
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• 2021

This study uses a choice experiment approach to examine whether different types of feedstocks as well as other attributes such as the cost of bioethanol, bioethanol blending ratio, and government support policies affect consumers' biofuel preferences. We apply a standard conditional logit model, a mixed logit model (MLM), and individual coefficient estimation model (ICM) to estimate the parameters of the investigated attributes. The results show that people prefer domestic and non-food feedstock, along with tax exemption as a support policy. All the attributes show unobservable preference heterogeneity in the MLM and ICM. In particular, willingness to pay for attributes are higher in the genetically modified (GM) feedstock-unknown group than in the known one. We show the importance of using domestic and non-food feedstocks and managing GM feedstocks carefully to avoid consumer resistance when producing bioethanol in South Korea.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.1
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• pp.329-338
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• 2019

In this study, we analyze consumer preferences based on the agricultural box scheme attributes, and make a suggestion for business revival. We estimate the marginal willingness to pay (MWTP) for box scheme attributes using a choice experiment. Attributes include the bundle method, the delivery method, and price. To select an efficient model for statistical analysis, we evaluate the conditional logit model, heteroscedastic extreme value model(HEV model), multinomial probit model, and mixed logit model under different assumptions. The results of these four models show that the bundle method, the delivery method, and price are statistically significant in explaining the probability of participation in a box scheme. The results of likelihood ratio tests show that the heteroscedastic extreme value model is the most appropriate for our survey data. The results also indicate that MWTP for a change from fixed type to selection type is KRW 7,096.6. MWTP for a change from parcel service to direct delivery and cold-chain delivery are KRW 3,497.5 and KRW 7,532.7, respectively. The results of this study may contribute to the government's local food policies.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.3
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• pp.703-710
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• 2017

Third-generation (3G) devicesare next-generation devices that allow the use of intelligent services and applications through the Internet of Things (IoT). As the market forexisting smart devices like smartphones and tablet PCs enters the stage of stagnation, the world is now focusing on 3G devices, parts, and services. This study is intended to measure the user's benefits from the various attributes of 3G devices by applying an economic valuation method. For this purpose, the conjoint analysis method was applied, which is one of the representative valuation methods. To apply conjoint analysis, the following attributes of 3G devicesare considered: mode of use, power efficiency, life care, and price. By applying the mixed logit model, the marginal willingness-to-pay(WTP) for each attribute was derived. The results are statistically significant. Respondents showed a high preference or complete flexibility in the mode of use attribute. And they were also found to have WTP for improvements in the life care attribute. The implications and quantitative results of this study are expected to be useful for policies and strategies in the 3G device market.