Public Perspective on Increasing Renewable Energy Use Ratio in Public Buildings in South Korea

The South Korean government plans to increase the share of renewable energy (RE) used in public buildings by 10% from the current 30% to 40% by 2030. This article seeks to estimate the public willingness to pay (WTP) for this increase. To this end, a contingent valuation was applied, with 1000 households randomly selected and surveyed through one-on-one interviews. The payment vehicle and WTP elicitation method were determined to be income tax per household and the one-and-one-half-bound model, respectively. The annual WTP per household was estimated to be KRW 2712 (USD 2.04) with statistical significance. When expanded to the population, this produces an annual value of KRW 60.15 billion (USD 45.23 million). The increase in the RE use share can not only reduce greenhouse gas emissions but also result in savings on electricity bills. The sum of these two can be considered as benefits, and the sum of the construction and maintenance costs incurred due to the increase can be considered as costs. The cost–benefit analysis indicates that the present value of net benefits and the benefit-to-cost ratio were estimated to be KRW 667.3 billion (USD 501.7 million) and 1.48, respectively. Consequently, the increase is socially desirable and should be implemented immediately.