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REFERENCE LINKING PLATFORM OF KOREA S&T JOURNALS
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Environmental and Resource Economics Review
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Journal DOI :
Korean Resource Economics Association
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Volume & Issues
Volume 22, Issue 4 - Dec 2013
Volume 22, Issue 3 - Sep 2013
Volume 22, Issue 2 - Jun 2013
Volume 22, Issue 1 - Mar 2013
Selecting the target year
Asymmetric Adjustment in Domestic Petroleum Prices Before and After the Opinet
Koh, Yukyung ;
Environmental and Resource Economics Review, volume 22, issue 4, 2013, Pages 581~612
DOI : 10.15266/KEREA.2013.22.4.581
Opinet is the system that has announced the daily domestic petroleum price data from April 2008. This study's goal is to examine if the domestic petroleum(gasoline and diesel) prices adjust their prices asymmetrically comparing before-Opinet with after-Opinet. The results of this study found the evidence of asymmetric domestic petroleum prices before the Opinet and the evidence of symmetric domestic petroleum prices after the Opinet. Also the domestic petroleum prices after the Opinet adjust upward/downward nearly twice as fast when its actual value is below/above its equilibrium. According to this study, the domestic petroleum market works more efficiently than before.
An Empirical Analysis on A Refiner's Asymmetric Gasoline Price Adjustment
Kim, Youngduk ;
Environmental and Resource Economics Review, volume 22, issue 4, 2013, Pages 613~641
DOI : 10.15266/KEREA.2013.22.4.613
This paper uses the error correction model to analyse dynamic gasoline price adjustments of the four refiners. Unlike the existing studies, this model allows a refiner's asymmetric adjustment to changes in the other refiners' prices as well as in its own price and costs. With the estimation results, we can obtain the following findings. First, there are the asymmetric price adjustments to changes in exchange rate and international gasoline price, but showing opposing directions. Second, for most of the refiners, the prices respond immediately to the lagged deviation from the long run equilibrium price, but asymmetrically respond for a few refiners. Third, there are some refiners that adjust their price to the other refiners' price deviation from the long run equilibrium. For some refiners, there are competitive price adjustments to the others' price deviations. These findings imply that a refiner faces inelastic demand, intends to maintain implicitly a relative level of its own price to others, and tends to respond competitively to the others' price deviation from the equilibrium.
The Asymmetric Response of Gasoline Prices to International Crude Oil Price Changes Considering Inventories
Bae, Jeeyoung ; Kim, Soohyeon ; Kim, Moonjung ; Oh, Soomin ; Heo, Eunnyeong ;
Environmental and Resource Economics Review, volume 22, issue 4, 2013, Pages 643~670
DOI : 10.15266/KEREA.2013.22.4.643
This study analyzed the impact of crude oil inventory while gasoline price adjusts to international crude oil price(WTI) fluctuations. We mainly focused on asymmetric relationship between crude oil and petroleum product prices and added oil inventory as an variable, using the error correction model which is based on Borenstein et al.(1997). This paper selected the sample period from January 1988 to December 2012, analyzed the asymmetry of each intervals and the influence of crude oil inventory to the degree of asymmetry changes, both full period and five years period respectively. The results showed that when considering crude oil inventory, existence and degrees of time amount asymmetry varies.
Information Transmission of Volatility between WTI and Brent Crude Oil Markets
Kang, Sang Hoon ; Yoon, Seong-Min ;
Environmental and Resource Economics Review, volume 22, issue 4, 2013, Pages 671~689
DOI : 10.15266/KEREA.2013.22.4.671
Transmission mechanisms of volatility between two crude oil markets (WTI and Brent markets) have drawn the attention of numerous academics and practitioners because they both play crucial roles in portfolio and risk management in crude oil markets. In this context, we examined the volatility linkages between two representative crude oil markets using a VECM and an asymmetric bivariate GARCH model. First, looking at the return transmission through the VECM test, we found a long-run equilibrium and bidirectional relationship between two crude oil markets. However, the estimation results of the GARCH-BEKK model suggest that there is unidirectional volatility spillover from the WTI market to the Brent market, implying that the WTI market tends to exert influence over the Brent market and not vice versa. Regarding asymmetric volatility transmission, we also found that bad news volatility in the WTI market increases the volatility of the Brent market. Thus, WTI information is transmitted into the Brent market, indicating that the prices of the WTI market seem to lead the prices of the Brent market.
Climate Change Policy Analysis Considering Bottom-up Electricity Generation System
Oh, Inha ; Oh, Sang-Bong ;
Environmental and Resource Economics Review, volume 22, issue 4, 2013, Pages 691~726
DOI : 10.15266/KEREA.2013.22.4.691
We develop a hybrid model which allows the change in electricity generation mix by adding the electricity-sector components of bottom-up model to the conventional CGE model. The electricity sector is represented as a sum of separate generation technologies, each of which has the form of DRTS (Decreasing Returns to Scale) production function, unlike the conventional CGE model. We compare the effects of the 30% emission reduction target using the hybrid model with those using the conventional CGE model. The cost of meeting the target is lower with the hybrid model than the conventional CGE. It is consistent with previous studies in that adding the bottom-up components to the top-down model reduces the cost of emission reduction. In an extra analysis we find that an additional regulation like RPS (Renewable Portfolio Standard) increases the cost.
An Empirical Analysis on the Price Effects of Fuel Surcharge Collusion in Air Cargo Industry
Sonn, Yang-Hoon ; Jeong, Jinook ;
Environmental and Resource Economics Review, volume 22, issue 4, 2013, Pages 727~757
DOI : 10.15266/KEREA.2013.22.4.727
This paper estimates the effects of Air Cargo companies' fuel surcharge collusion on the final airfreight prices. We show that the final prices have not been generally higher than the 'but-for prices,' and even been significantly lower for some companies. We analyze the possible reasons for such findings, and conclude that the collusion on fuel surcharges has not been successful due to the oil price hike in the cartel period. We also find that the oil price elasticities of fuel surcharges are significantly lower than 1.
Analysis on Price Driver of Spread and Different Patterns of EUA and sCER
Park, Soonchul ; Cho, Yongsung ;
Environmental and Resource Economics Review, volume 22, issue 4, 2013, Pages 759~784
DOI : 10.15266/KEREA.2013.22.4.759
Participants can use the allowances and offsets for implementing the compliance in the Emissions Trading Scheme(ETS). There are alternative commodities which are different prices it gives the opportunities to reduce the compliance costs and get the arbitrage. This study analyzes the price driver of spread which is the difference between EUA and sCER using AR-GARCH model, EUA and CER during the Phase 2 in EU ETS. The results show that there are common elements which impacts the EUA and sCER and also different elements between them. EUA and sCER get the effects from energy price and economic criteria such as coal price and financial crisis as common elements. However them get the effects from electric price, policy criteria such as restricted CERs and difference price between EUA and ERU price as different elements. The results shows that spread will be widen if energy price increase, especially oil and electric price give more impacts the spreads. This study has the means that it explains the reason why the spreads will broaden sharply in 2012. And it also suggests the price driver of spread during the whole period of Phase 2. In addition, this study shows that political aspects maybe become the main criteria of price change with structural elements shch as energy price in Korea ETS which starts in 2015.
Environmental Regulations and Korean Trades
Kim, Il Chung ; Choi, Mun Seong ;
Environmental and Resource Economics Review, volume 22, issue 4, 2013, Pages 785~815
DOI : 10.15266/KEREA.2013.22.4.785
This paper analyzes the three issues related to the effect of environmental regulations on the Korean trades with gravity equation model: the effect on the Korean exports, the bilateral trade flows between the Korea and the trade partners, and the Korean international competitiveness. For all three issues we carried the empirical tests with fixed effect estimation methods for total industries, non-pollution industries, pollution industries, and also 16 individual pollution industries. We use industry panel data for the 120 largest trading countries with Korea for the years 2000-2010. The Environmental Performance Index (EPI) is used as the proxy variable for the environmental regulation. The empirical result shows that while GDPs of both Korea and its trading partners are very important factors affecting positively the Korean trades for all industries, the environmental regulation of the importing country would be a definite trade barrier to the Korean pollution industries, but not a definite one for the non-pollution industries. In addition, the stricter environmental regulations of Korea's trade partners would weaken the Korean international competitiveness of Korean pollution industries. In this regard, the Porter Hypothesis would have not appeared in the Korean trades of pollution industries during the period observed in this study.
An Economic Feasibility Study for the Slow Food Expo in Korea
Choi, Jong Du ;
Environmental and Resource Economics Review, volume 22, issue 4, 2013, Pages 817~841
DOI : 10.15266/KEREA.2013.22.4.817
The purpose of this study is to examine feasibility of the 'Master Plan of 2013 Slow Food Expo(2013 AsiO Gusto), Korea' and to analyze the following economic effect. To this end, we used existing data and statistics, and estimated the demand by means of survey for people's traveling and questionnaires for ordinary Koreans. For examining financial feasibility for hosting the Expo, BC ratio (Benefit-Cost Ratio) and NPV (Net Present Value) was applied. For estimating the economic effect following the Expo, the effect on all over the country and the Gyeong-gi province was analyzed, using the MRIO (Model of Regional Input-Output). Specifically, with the net effect of Expo, the economic feasibility test shows 1.04~2.15 BC ratio with 10% free admission, and 1.02~2.27 BC ratio in Finance analysis. Furthermore, the Expo feeds through Gyeong-gi (including Nam-yang-ku) regional economies with production induction effect, value-added induction effect, and employment induction effect. The amounts of regional effects are 373.6~738.7 billion won, 166.2~327.4 billion won, and 1,971~2,009 persons, respectively. Also, the "2013 Slow Food Expo, Korea" was analyzed profitable in general. Residents in Nam-yang-ju expects the Expo to bring vitalities into their hometown. The Expo is highly related to the positive economic effectiveness of Nam-yang-ju.