Korean Energy Economic Review ISSN:1599-7057(Print) 에너지경제연구

With increasing demand and limited supply of oil, thereby surging oil prices, it is very important and urgent that a country ensures energy security and gain the energy independence. At the stage of vast global warming, it is also imperative the world develops earth-friendly energy resources. Developing domestic bio-diesel is a one of important measures to solve some of these problems. Bio-diesel could replace conventional diesel fuel for transportation and is also environmentally advantageous. Domestically producing bio-diesel will allow us to become a energy producing nation making us energy independence. It will also provide a substitute produce for the agricultural industry. Using the conjoint choice method, the estimated value of social benefit will be 224 billion won, 334 billion won, and 701 billion won if conventional diesel fuel is substituted with BD5, BD20 and BD100, respectively. The use of domestic resource to produce bio-diesel will increase the social benefit by 286 billion won._x000D_