In a 2014 study, the Research Institute of Energy and Economy found that consumers were generally willing to pay an additional 3,456 Korean won(3.10 US dollars) per month to use electricity generated from new and renewable energy sources. This was double the amount portrayed by a previous study, that found willingness to pay 1,500 Korean won(1.40 US dollars) per month. Further, consumers were willing to pay an additional 4,554 Korean won (4.10 US dollars) per month for the substitution of nuclear power generation with new and renewable energy sources and 4,005 Korean won(3.60 US dollars) per month for substituting coal-fired power generation with new and renewable energy source. This increase of interest in the safety and environment-friendly use of energy was attributed to the Fukushima nuclear power plant accident and the increasingly occurring ultrafine particle matter dust phenomenon. 14 It is not easy to increase electricity prices because of the energy-intensive nature of the country’s industrial sector. In 2015, the industrial sector consumed 62.5 per cent of final energy and 54.9 per cent of electricity generated. And despite consumers willing to pay higher prices for renewable energy, some people regard electricity as a public good that the government should provide at a cheap price. In 2015, electricity price for residential use corresponded to approximately 64 per cent of the OECD average price(89 per cent for the price of industrial electricity). The electricity price compared with other energy sources is rather low. As a result, electricity consumption is expected to soar, leading to increased electricity demand. Due to the rather low electricity prices, there is no incentive to improve energy efficiency. Table 5: Comparison of electricity price in OECD countries Country Household US$/MWh OECD=100(%) Republic of Korea 102.70 63.8 Germany 327.10 203.3 Italy 257.90 160.3 Japan 225.10 139.9 Norway 94.50 58.7 England 236.90 147.2 USA 126.70 78.7 OECD average 160.90 100.0 Industry US$/MWh OECD=100(%) 95.00 89.2 145.10 136.2 263.30 247.2 162.00 152.1 35.30 33.1 143.00 134.3 69.00 64.8 106.50 100.0 Source: Organisation for Economic Co-operation and Development and International Energy Agency, Energy Prices and Taxes(Paris: OECD Publishing, 2016). The industrial sector uses the largest proportion of electricity among all types of consumption. In 2015, industry accounted for 55 per cent of total electricity used, while households accounted for 14 per cent. Although KEPCO supports conglomerates with cheap industrial electricity rates, in 2015, its annual sales revenue was 54 trillion Korean won. In 2016, KEPCO sales grew to 60,190 billion Korean won— the most revenue ever. KEPCO posted an operating profit of 12 trillion Korean won for 2015 and 2016. 14 Currency conversion based on an exchange rate of 1 US dollar to 1,115.30 Korean won as of July 25, 2017. 16