Estimation of Total Benefits of Battery-Swapping Electric Bus Systems using a Contingent Valuation Method

CO2 emissions from fossil fuel combustion and industrialization contribute nearly 78% to the total greenhouse gas emissions. To reduce CO2 emissions in the transportation sector, the South Korean government is attempting to introduce a battery-swapping electric bus system. Some government-level economic analysis studies have been conducted to analyze the cost/benefit of the introduction. This research, by contrast, estimates the estimation of the benefits of the new bus system using the contingent valuation method (CVM), which is widely used to estimate the value of non-market public goods. A survey was conducted in Seoul city, and a total of 972 complete CVM questionnaires were used for analysis. A valuation function was developed for the study, and the total willingness-to-pay (TWTP) for the new system was estimated. Total benefits of the new system were USD 36,537,470 and the B/C ratio was computed as 1.47, which is slightly higher than the results of the previous national level research. If the international market price of battery cells decreases, and battery cells become more efficient, the B/C ratio of introducing the new battery-swapping electric bus system will increase.