The publicʹs value of hydrogen fuel cell buses: A contingent valuation study

With the increasing interest in global warming, there has been intense international competition with regard to the introduction of the hydrogen (H2) fuel cell (FC) bus, which represents a promising solution for the low-carbon age. With respect to the investment in H2-based technology development and the expansion of H2 FC vehicles, the consumer attitude is a crucial factor because the Korean government will consider it one of the most important factors in its decision to approve a large-scale introduction of H2 FC buses. In this regard, this study measures the publicʹs willingness to pay (WTP) for a large-scale introduction of H2 FC buses in Korea by employing a survey approach termed the contingent valuation. Furthermore, to enhance statistical efficiency, this study employs the one-and-one-half-bound dichotomous choice method. The annual mean WTP estimate was KRW 4230 (USD 4.55) per household as of 2007. The estimate of the annual benefits to the affected residents was KRW 32.3 billion (USD 34.7 million). The results of this study are expected to be helpful in policy decisions related to the introduction of H2 FC buses and investment in H2 technology development.