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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 23, Issue 4 - Dec 2014
Volume 23, Issue 3 - Sep 2014
Volume 23, Issue 2 - Jun 2014
Volume 23, Issue 1 - Mar 2014
Selecting the target year
A Study on the impact of the changes in international emissions trade market on non-CO
Lee, Eungkyoon ; Hwang, Minsup ; Lee, Myung-Kyoon ;
Environmental and Resource Economics Review, volume 23, issue 2, 2014, Pages 157~185
DOI : 10.15266/KREEA.2014.23.2.157
The Kyoto Protocol has extended its life until 2020 by the decision at COP18 in Doha, Qatar in 2012. So has the Kyoto Mechanism of CDM, JI, and ETS. Nonetheless, the sustainability of CDM projects is jeopardized by the recent rule changes in the international emissions trade market such as EU ETS and the price decrease in emission credits. In particular, the domestic CDM projects reducing non-
GHG emissions are being directly affected. This study examines the trend of carbon credit price change in the international market. It also examines how the rule changes in the international emissions trade market have affected domestic non-
CDM projects through which mechanisms. The policy implications drawn from this study is two-fold: it suggests how the government can assist the project developers in utilizing GHG emission reduction technologies and the market in promoting investment environment before the domestic ETS enters into effect in 2015; apart from possible measures within ETS, an additional measures such as bilateral carbon offset system is suggested to help the private sector reduce uncertainty in investment and increase options to choose.
Theoretical and Empirical Issues in Conducting an Economic Analysis of Damage in Price-Fixing Litigation: Application to a Transportation Fuel Market
Moon, Choon-Geol ;
Environmental and Resource Economics Review, volume 23, issue 2, 2014, Pages 187~224
DOI : 10.15266/KREEA.2014.23.2.187
We present key issues to consider in estimating damages from price-fixing cases and then apply the procedure addressing those issues to a transportation fuel market. Among the five methods of overcharge calculation, the regression analysis incorporating the yardstick method is the best. If the price equation relates the domestic price to the foreign price and the exchange rate as in the transportation fuel market, the functional form satisfying both logical consistency and modeling flexibility is the log-log functional form. If the data under analysis is of time series in nature, then the ARDL model should be the base model for each market and the regression analysis incorporating the yardstick method combines these ARDL equations to account for inter-market correlation and arrange constant terms and collusion-period dummies across component equations appropriately so as to identify the overcharge parameter. We propose a two-step test for the benchmarked market: (a) conduct market-by-market Spearman or Kendall test for randomness of the individual market price series first and (b) then conduct across-market Friedman test for homogeneity of the market price series. Statistical significance is the minimal requirement to establish the alleged proposition in the world of uncertainty. Between the sensitivity analysis and the model selection process for the best fitting model, the latter is far more important in the economic analysis of damage in price-fixing litigation. We applied our framework to a transportation fuel market and could not reject the null hypothesis of no overcharge.
A Study on the Optimal Tax of Gasoline in Korea
Choi, Bongseok ; Jung, Yong Hun ;
Environmental and Resource Economics Review, volume 23, issue 2, 2014, Pages 225~248
DOI : 10.15266/KREEA.2014.23.2.225
The purpose of this study is to estimate the optimal tax rate for gasoline in Korea, by utilizing both the parameters for the estimation of the optimal fuel taxes and the theoretical model considering externalities proposed by Parry and Small (2005). The result of simulation shows that the optimum fuel taxes in Korea is calculated in 382 korean won per liter, which is lower than fuel tax rate(529 korean won per liter) currently being imposed. The fuel tax is composed of two types of tax. First is Pigouvian tax caused by negative externality such as traffic congestion and accidents etc. And second is Ramsey tax for optimal commodity sales taxes. We find that Pigouvian tax in Korea is higher than one of U.S. and U.K and Ramsey tax is very small due to the inelastic labor supply comparing to consumption elasticity of fuel. When adjusting the elasticity of labor supply to the UK level, the optimal fuel tax in Korea is very close to the current level of 480 korean won per liter. This paper contributes to suggest the reasonable estimation and discussion in the social optimum fuel tax rates by utilizing the theory and simulation and improve the possibility of the derivation of optimum fuel taxes through both securing the exact parameters and modifying the theoretical model suitable for Korea.
An Analysis of Uncertainties in Energy Category: Estimation by using Tier 1 Method
Hwang, In Chang ; Jin, Sang Hyeon ;
Environmental and Resource Economics Review, volume 23, issue 2, 2014, Pages 249~280
DOI : 10.15266/KREEA.2014.23.2.249
IPCC requires the national uncertainties which show how credible the emission of greenhouse gases is. But the Korean government did not submit the total uncertainties, only the detailed uncertainties by items. Also it uses the default values of IPCC including some missing values. This paper tries to estimate the total uncertainties of energy by categories, which accounts for 85.3% in national emission of greenhouse gases. Concretely, it uses Tier 1 method suggested by IPCC. As a result of the analysis, the uncertainties in energy category are 3.4% similar to Finland`s. But there was a big difference among greenhouse gases; carbon dioxide 2.7%, methane 116% and nitrous oxide 473%. So this paper suggests Korean government need to improve not only the activity but also the emission factor of data in order to reduce the national uncertainties in energy category.
Eco-friendly vehicle preferences by consumer characteristics
Won, Doohwan ;
Environmental and Resource Economics Review, volume 23, issue 2, 2014, Pages 281~304
DOI : 10.15266/KREEA.2014.23.2.281
This research presents that exogenous characteristics of consumers affect eco-friendly vehicle preference. The car consumers are classifies into two groups by their characteristics - sex, age, and fuel expense. To find differences in the preference for eco-friendly vehicle, marginal utilities and compensate variations of vehicle attributes are estimated. The results suggest that there are significant differences in marginal utilities and compensate variations. However, the compensate variation is more reliable standard to test the preference differences because utility is a subjective measure. Men and old people have stronger preference for the fuel efficiency than women and young people. High fuel expense people have more preference for short time charging vehicles than low fuel expense people. In addition, gasoline vehicles are more attractive to young people than old people.
A Comparison of Decomposition Analyses for Primary and Final Energy Consumption of Korea
Park, Sungjun ; Kim, Jinsoo ;
Environmental and Resource Economics Review, volume 23, issue 2, 2014, Pages 305~330
DOI : 10.15266/KREEA.2014.23.2.305
There has been a lot of studies to identify the driving forces of energy consumption. Many of them decomposed the final energy consumption into the intensity effect, structural effect, and production effect. Those approach, however, could not consider the transformation loss during the electric power generation. Therefore, in this study, we conducted a decomposition analysis on the primary energy use basis to reflect that transformation loss. Log mean Divisia index and refined Laspeyres methods were used for the index decomposition. As results, we could find out that the difference between two approaches were definite. The intensity effect in 2011 is -0.607 times against 1981 in the final energy case, but -0.236 times in the primary energy case. The structure effect in 2011 is 0.227 times against 1981 in the final energy case, but 0.434 times in the primary energy case. Therefore, an analysis on the primary energy basis is essential when conducting a decomposition analysis.
Estimating the Economic Value of Recreation Sea Fishing in the Yellow Sea: An Application of Count Data Model
Choi, Jong Du ;
Environmental and Resource Economics Review, volume 23, issue 2, 2014, Pages 331~347
DOI : 10.15266/KREEA.2014.23.2.331
The purpose of this study is to estimate the economic value of the recreational sea fishing in the Yellow Sea using count data model. For estimating consumer surplus, we used several count data model of travel cost recreation demand such as a poisson model(PM), a negative binomial model(NBM), a truncated poisson model(TPM), and a truncated negative binomial model(TNBM). Model results show that there is no exist the over-dispersion problem and a NBM was statistically more suitable than the other models. All parameters estimated are statistically significant and theoretically valid. The NBM was applied to estimate the travel demand and consumer surplus. The consumer surplus pre trip was estimated to be 254,453won, total consumer surplus per person and per year 1,536,896won.
An Analysis on the Causality between Production Activity and Electricity Consumption in Manufacturing Sector
Lim, Jaekyu ; Kim, Jong-Ik ;
Environmental and Resource Economics Review, volume 23, issue 2, 2014, Pages 349~364
DOI : 10.15266/KREEA.2014.23.2.349
This study analyzed Granger causality between power consumption and production activity in manufacturing sector, by using error correction model. It found that there exists the connection between power consumption and production activity in manufacturing sector. By reflecting the industrial characteristics, it found not only the bilateral causality (power consumption
production activity) in power non-intensive industry, high value-added industry and low value-added industry, but also one-way causality (power consumption
production activity) in power-intensive industry. These results imply that power demand management policy focusing on efficiency improvement is necessary primarily to minimize negative impacts on production activity, and also stable power supply system is required to meet the increase of power demand.