Are Korean Households Willing to Pay a Premium for Induction Cooktops over Gas Stoves?
Abstract
:1. Introduction
2. Methodology
2.1. Method: The CV Approach
2.2. Sampling and Survey Instrument
2.3. How to Elicit WTP
2.4. Payment Vehicle
3. WTP Model
3.1. OOHB DC Model
3.2. Spike Model
4. Estimation Result
4.1. Data
4.2. Results from Estimating the OOHB DC Spike Model
4.3. Estimation Results of the Model with Covariates
4.4. Discussion of the Results
5. Conclusions and Policy Implications
Acknowledgments
Author Contributions
Conflicts of Interest
References
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Bid Amount a | Lower Bid Is Presented as the First Bid (%) b | Upper Bid Is Presented as the First Bid (%) b | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
‘Yes–Yes’ | ‘Yes–No’ | ‘No–Yes’ | ‘No–No’ | ‘Yes’ | ‘No–Yes’ | ‘No–No–Yes’ | ‘No–No–No’ | Sample Size | ||
20 | 100 | 23 (16.1) | 26 (18.2) | 1 (0.7) | 22 (15.4) | 30 (21.0) | 15 (10.5) | 0 (0.0) | 26 (18.2) | 143 (100.0) |
50 | 150 | 19 (13.3) | 15 (10.5) | 1 (0.7) | 36 (25.2) | 21 (14.7) | 10 (7.0) | 4 (2.8) | 37 (25.9) | 143 (100.0) |
100 | 200 | 16 (11.2) | 12 (8.4) | 3 (2.1) | 40 (28.0) | 22 (15.4) | 8 (5.6) | 6 (4.2) | 36 (25.2) | 143 (100.0) |
150 | 300 | 11 (7.7) | 14 (9.8) | 6 (4.2) | 40 (28.0) | 25 (17.5) | 7 (4.9) | 4 (2.8) | 36 (25.2) | 143 (100.0) |
200 | 400 | 12 (8.5) | 15 (10.6) | 5 (3.5) | 39 (27.5) | 20 (14.1) | 10 (7.0) | 8 (5.6) | 33 (23.2) | 142 (100.0) |
300 | 500 | 10 (7.0) | 10 (7.0) | 8 (5.6) | 44 (30.8) | 15 (10.5) | 7 (4.9) | 8 (5.6) | 41 (28.7) | 143 (100.0) |
400 | 700 | 10 (7.0) | 10 (7.0) | 7 (4.9) | 45 (31.5) | 10 (7.0) | 15 (10.5) | 10 (7.0) | 36 (25.2) | 143 (100.0) |
Sample size | 101 (20.2) | 102 (10.2) | 31 (3.1) | 266 (26.6) | 143 (14.3) | 72 (7.2) | 40 (4.0) | 245 (24.5) | 1000 (100.0) |
Variables | Coefficient Estimates d |
---|---|
Constant | −0.0535 (−0.85) |
Bid a | −0.0322 (−17.67) # |
Spike | 0.5134 (32.53) # |
Mean WTP per cubic meter of residential gas | KRW 207 (USD 0.19) |
t-value | 16.49 # |
95% confidence intervals b | KRW 184–234 (USD 0.17–2.11) |
99% confidence intervals b | KRW 178–244 (USD 0.16–0.22) |
Number of observations | 1000 |
Log-likelihoods | −1216.98 |
Wald statistics c (p-values) | 271.95 (0.000) |
Variables | Definitions | Mean | Standard Deviation |
---|---|---|---|
Gender | The respondent’s gender (1 = male; 0 = female) | 0.50 | 0.50 |
Family | The size of the respondent’s household (unit: persons) | 3.31 | 1.07 |
Education | The respondent’s education level in years | 14.01 | 2.42 |
Income | The household’s monthly income before tax deduction (unit: million Korean won) | 4.33 | 1.82 |
Variables a | Estimates | t-Values |
---|---|---|
Constant | −0.7063 | −1.84 * |
Bid b | −0.0328 | −16.89 # |
Gender | −0.2978 | −2.45 ** |
Family | −0.1654 | −2.72 # |
Education | 0.0685 | 2.64 # |
Income | 0.8924 | 2.56 # |
Spike | 0.5143 | 32.55 # |
Mean WTP per cubic meter of residential gas | KRW 203 (USD 0.18) | |
t-value | 16.15 # | |
95% confidence interval b | KRW 180–230 (USD 0.16–0.21) | |
99% confidence interval b | KRW 173–240 (USD 0.16–0.22) | |
Number of observations | 1000 | |
Log-likelihood | −1205.172 | |
Wald statistic c (p-value) | 260.87 (0.000) |
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Kim, H.-J.; Lim, S.-Y.; Yoo, S.-H. Are Korean Households Willing to Pay a Premium for Induction Cooktops over Gas Stoves? Sustainability 2017, 9, 1546. https://doi.org/10.3390/su9091546
Kim H-J, Lim S-Y, Yoo S-H. Are Korean Households Willing to Pay a Premium for Induction Cooktops over Gas Stoves? Sustainability. 2017; 9(9):1546. https://doi.org/10.3390/su9091546
Chicago/Turabian StyleKim, Hyo-Jin, Seul-Ye Lim, and Seung-Hoon Yoo. 2017. "Are Korean Households Willing to Pay a Premium for Induction Cooktops over Gas Stoves?" Sustainability 9, no. 9: 1546. https://doi.org/10.3390/su9091546