Go to the main menu
Skip to content
Go to bottom
REFERENCE LINKING PLATFORM OF KOREA S&T JOURNALS
> Journal Vol & Issue
Environmental and Resource Economics Review
Journal Basic Information
Journal DOI :
Korean Resource Economics Association
Editor in Chief :
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
Spatial Price Competition in the Korean Retail Gasoline Market
Kim, Donghun ; Lee, Jiyon ;
Environmental and Resource Economics Review, volume 23, issue 4, 2014, Pages 553~581
DOI : 10.15266/KEREA.2014.23.4.553
This paper analyzes competition among service stations in the Korean gasoline market. We consider spatial differentiation as a source of product differentiation as well as the characteristics of the stations and vertical contracts between refiners and retailers as factors causing changes in equilibrium prices in the Korean gasoline retail market. The effect of the government's price disclosure policy on the retail market competition is also analyzed. Moran's I test indicates that the prices of neighboring gas stations are spatially correlated in the market. It is also found that gasoline prices for vertically integrated stations are much lower than those for independent stations. In addition, unbranded stations charge lower prices than branded stations but also induce branded stations to price more competitively. Meanwhile, the government's price disclosure policy did intensify price competition in the retail gasoline market. It is inferred that the price disclosure policy contributed to retailers gaining more bargain power in price negotiation with refiners, causing an eventual increase in retail prices.
Portfolio Analysis on the New Power Generation Sources of the Sixth Basic Plan for Long Term Electricity Demand and Supply
Kim, Juhan ; Kim, Jinsoo ;
Environmental and Resource Economics Review, volume 23, issue 4, 2014, Pages 583~615
DOI : 10.15266/KEREA.2014.23.4.583
Including the rolling black out in 2011, Korea has suffered from rapid increase of electricity consumption and demand forecasting failure for last five years. In addition, because of the Fukushima disaster, high fuel prices, and introduction of new generation sources such as renewables, the uncertainty on a power supply strategy increases. Consequently, a stable power supply becomes the new agenda and a revisino of strategy for new power generation sources is needed. In the light of this, we appraises the sixth basic plan for long term electricity demand and supply considering the changes of foreign and domestic conditions. We also simulate a strategy for the new power generation sources using a portfolio analysis method. As results, a diversity of power generation sources will increase and the share of renewable power generation will be surged on the assumptions of a cost reduction of renewable power sources and an increase of fuel costs. Particularly, on the range of a risk level(standard deviation) from 0.06 and 0.09, the efficient frontier has the most various power sources. Besides, the existing power plan is not efficient so that an improvement is needed. Lastly, the development of an electricity storage system and energy management system is necessary to make a stable and efficient power supply condition.
The Influence of Excluding No-load Cost from SMP on Cost Reduction Incentive of Generators
Kim, Myung Yun ; Cho, Sung Bong ;
Environmental and Resource Economics Review, volume 23, issue 4, 2014, Pages 617~641
DOI : 10.15266/KEREA.2014.23.4.617
Korean electricity market is a Cost-Based Pool (CBP) designed to minimize electricity production cost through cost by providing cost reduction incentives to generators. Generation companies have shown diverse efforts to reduce costs in CBP market such as procuring low-price fuels, installing high efficiency gas turbine and constructing power plants near the heavy-load site. Recently, as a way to improve CBP market, a proposal to exclude no-load cost from System Marginal Price (SMP) and to compensate generators ex post was suggested to Korea Power Exchange. This study analyzes the impact of excluding no-load cost from SMP on the cost reduction incentive of generators. We found that excluding no-load cost from SMP enhances the likelihood of decreasing the cost reduction incentives of LNG combined-cycle generators lying on the price-setting range.
The Impacts of the Optimal Non-Financial Contractual Structure on the Leverage Ratio in Project Finance
Lee, Changmin ; Choi, Bongseok ; Kim, Seon Tae ;
Environmental and Resource Economics Review, volume 23, issue 4, 2014, Pages 643~665
DOI : 10.15266/KEREA.2014.23.4.643
We study the optimal policy of the contracual arrangement in raising the debt-to-equity ratio for oil, gas and mining project finance deals. We investigate the impact of the optimal contractual relationship between counterparties on the soundness of projects, differing in output price volatility and country risk. Key findings are: first, the existence of EPC sponsors and off-takers generally raises the debt-to-equity ratio. In particular, EPC sponsors and off-taking sponsors jointly mitigate the credit risk caused by counntry risk. Seocond, off-taking and EPC contracts jointly help mitigate the credit risk caused by the country risk, rather than the price volatility. Indeed, the contractual structure raises the debt-to-equity ratio.
EKC Hypothesis Testing for the CO
Emissions of Korea Considering Total Factor Productivity: Focusing on the CO
Emissions by Region and GRDP
Kim, Suyi ; Jung, Kyung Hwa ;
Environmental and Resource Economics Review, volume 23, issue 4, 2014, Pages 667~688
DOI : 10.15266/KEREA.2014.23.4.667
This research tested the EKC (Environment Kuznets Curve) Hypothesis using the
Emissions by region and GRDP. We built the panel data set on the 15 local government region from 1990 to 2010 for this analysis. GRDP, population and total factor productivity was considered as the factors influencing on the regional
Emissions. Analysis method in this research is panel GLS model as Lantz and Feng (2006). The results show that the EKC hypothesis did not hold in Korea but there is inverted U relationship between the
Emissions and total factor productivity. As the total factor productivity grows, the
increased but decreased after a certain level.
Analysing the Economic Effects of Flood Damage by Dynamic CGE Model
Jeong, Kiho ; Whang, Sungyoon ;
Environmental and Resource Economics Review, volume 23, issue 4, 2014, Pages 689~718
DOI : 10.15266/KEREA.2014.23.4.689
This study analyzes the ripple effects on the national economy of the flood damage using a perfect foresight dynamic CGE model for 2010 as the base year in case that the flood damage reduces the capital of the relevant industrial sectors. The analysis is limited to the items of physical damage such as agricultural land, ships and public facilities, for which statistical data can be obtained. As flood damage scenarios we adopt the minimum, maximum and average value of flood damage's historical data over the period 1991~2010 for each item. The results show that the largest production decline happens to the industry of fishing and transport and the next largest to the agricultural and forestry industry. The GDP reduction in the base year turns out to be from 0.001 to 0.057 percent compared to the benchmark and 11 percent compared to the exogenous shock to capital stock. Dynamically, the GDP gradually decreases until the year of 2030, which shows the long-lasting impact on the national economy of flood damage via the chanel of the capital damage.
Valuation of the Water Pollution Reduction: An Application of the Imaginary Emission Market Concept
Han, Tak-Whan ; Lee, Hyo Chang ;
Environmental and Resource Economics Review, volume 23, issue 4, 2014, Pages 719~746
DOI : 10.15266/KEREA.2014.23.4.719
This study attempts to estimate the value of the water quality improvement by deriving the equilibrium price of the water pollutant emission permit for the imaginary water pollutant emission trading market. It is reasonable to say that there is already an implicit social agreement for the unit value of water pollutant, when the government set the Total Water Pollutant Loading System for the major river basin as a part of the Comprehensive Measures for Water Management, particularly for the Nakdong River Basin. Therefore, we can derive the unit value of water pollutant emission, which is already implied in the pollution allowance for each city or county by the Total Water Pollutant Loading System. Once estimated, it will be useful to the economic assessment of the water quality related projects. An imaginary water pollutant emission trading system for the Nakdong River Basin, where Total Water Pollutant Loading System is already effective, is constructed for the estimation of the equilibrium price of water pollutant permit. By estimating marginal abatement cost curve or each city or county, we can compute the equilibrium price of the permit and then it is regarded as the economic value of the water pollutant. The marginal net benefit function results from the relationship between the emission and the benefit, and then the equilibrium price of permit comes from constructing the excess demand function of the permit by using the total allowable permit of the local government entity. The equilibrium price of the permit would be estimated to be
. This is within reasonable boundary compared for the permit price compared to foreign example. This permit price would be applied to calculate for the economic value of the water quality pollutants, and also be expected to use directly for the B/C analysis of the business involved with water quality change.
An Empirical Study on Impacts of Overlapping Climate and Energy Policies on Mitigation of Greenhouse Gas Emissions
Bae, Jeong Hwan ; Kang, Heechan ;
Environmental and Resource Economics Review, volume 23, issue 4, 2014, Pages 747~784
DOI : 10.15266/KEREA.2014.23.4.747
Many countries have implemented a variety of climate and energy policies to reduce greenhouse gas emissions and expand renewable energy production. The ultimate goals of those policies are associated with transition to a low-carbon economy that aims to combat climate change and economic growth. This study aims to examine empirically if the countries which implement overlapping climate policies and renewable energy policies show additional reduction of the GHG emissions than the countries which implement single climate or renewable energy policy. The result shows that overlapping policies contribute to reduce additional GHG but not all cases. In particular, only overlapping policies mixing 'ETS and RPS(renewable portfolio standards)' and 'Carbon Tax and FIT(Feed-in Tariff)' can lead to additional reduction of GHG emissions.