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REFERENCE LINKING PLATFORM OF KOREA S&T JOURNALS
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Environmental and Resource Economics Review
Journal Basic Information
Journal DOI :
Korean Resource Economics Association
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Volume & Issues
Volume 24, Issue 4 - Dec 2015
Volume 24, Issue 3 - Sep 2015
Volume 24, Issue 2 - Jun 2015
Volume 24, Issue 1 - Mar 2015
Selecting the target year
A Monte-Carlo Least Squares Approach for CO
Abatement Investment Options Analysis with Linearly Non-Separable Profits of Power Plants
Park, Hojeong ;
Environmental and Resource Economics Review, volume 24, issue 4, 2015, Pages 607~627
DOI : 10.15266/KEREA.2015.24.4.607
As observed and experienced in EU ETS, allowance price volatility is one of major concerns in decision making process for
abatement investment. The problem of linearly non-separable profits functions could emerge when one power company holds several power plants with different technology specifications. Under this circumstance, conventional analytical solution for investment option is no longer available, thereby calling for the development of numerical analysis. This paper attempts to develop a Monte-Carlo least squares model to analyze investment options for power companies under emission trading scheme regulations. Stochastic allowance price is considered, and simulation is performed to verify model performance.
The Impact of Nuclear Power Generation on Wholesale Electricity Market Price
Jung, Sukwan ; Lim, Nara ; Won, DooHwan ;
Environmental and Resource Economics Review, volume 24, issue 4, 2015, Pages 629~655
DOI : 10.15266/KEREA.2015.24.4.629
Nuclear power generation is a major power source which accounts for more than 30% of domestic electricity generation. Electricity market needs to secure stability of base load. This study aimed at analyzing relationships between nuclear power generation and wholesale electricity price (SMP: System Marginal Price) in Korea. For this we conducted ARDL(Autoregressive Distributed Lag) approach and Granger causality test. We found that in terms of total effects nuclear power supply had a positive relationship with SMP while nuclear capacity had a negative relationship with SMP. There is a unidirectional Granger causality from nuclear power supply to SMP while the reverse was not. Nuclear power is closely related to SMP and provides useful information for decision making.
A Study on Nonlinear Dynamic Adjustment of Spot Prices of Major Crude Oils
Park, Haesun ; Lee, Sangjik ;
Environmental and Resource Economics Review, volume 24, issue 4, 2015, Pages 657~677
DOI : 10.15266/KEREA.2015.24.4.657
We employ a 3 regime-threshold vector error correction models (TVECM) to investigate the nonlinear dynamic adjustments of three marker crude oil prices such as WTI (West Texas Intermediate), Brent and Dubai. Especially we deal with 3 combinations of oil prices including WTI-Brent, WTI-Dubai and Brent-Dubai in order to analyze the dynamic adjustments of the prices based on the effects of the price spreads among these crude oil prices. Our daily spot prices data run from 2001.1.3 to 2014.12.31. We found that each combination is cointegrated over the period. WTI had dropped significantly in 2010 which had affected the movements of the spreads. To accomodate this fact, we divide the period into two sub-periods: 2000.1.3-2009.12.31 and 2010.1.1-2014.12.31. It is found that each combination is cointegrated in both sub-periods. Moroever, in the first sub-period, all three oil prices are shown to follow nonlinear dynamic adjustments. In the second sub-period, however, TVECM is better than VECM(vector error correction model) for WTI-Dubai and Brent-Dubai while VECM performs better for WTI-Brent. The transaction costs are estimated to be reduced for the second sub-period for WTI-Dubai and Brent-Dubai compared to the first sub-period.
Estimation of Korean LNG Price Allowing a Structural Change
Cho, Hong Chong ; Han, Wonhee ;
Environmental and Resource Economics Review, volume 24, issue 4, 2015, Pages 679~708
DOI : 10.15266/KEREA.2015.24.4.679
Almost all of natural gas demand in Korea is currently met by overseas LNG imports. More than 80% of LNG is imported through the mid to long-term contracts with oil-linked pricing. Despite LNG price estimation provides valuable information with various interested parties, an empirical study as well as an econometric model on LNG price hasn't yet been available in Korea. This paper therefore, aims at analyzing not only whether the long-run equilibrium relationship between oil prices and Korean LNG prices exists but also whether structural change occurred in such relationship. Further, it aims at building a conditional VECM taking account of a structural change. According to the final model, an oil price shock is passed through to the LNG prices in nonlinear and different manner from the past.
The Impact of the Supply Regulation on the Price in Farming Olive Flounder
Kang, Seokkyu ;
Environmental and Resource Economics Review, volume 24, issue 4, 2015, Pages 709~725
DOI : 10.15266/KEREA.2015.24.4.709
This study is to analyse the relationship between the price and the supply in the farming Olive Flounder's production area market. The data used in this study correspond to daily price and supply quantity covering time period from January 1, 2007 to June 30. 2013. The analysis methods of cointegration and vector error correction model are employed. The empirical results of this study are summarized as follows: First, the price and the supply follow random walks and they are integrated of order 1. Second, the price and the supply are cointegrated. Third, vector error correction model suggests that the relationship between the price change ration and the supply quantity change ratio has negative and feedback effect exists in the long-run, but the disequilibrium between the price and the supply is corrected by the supply quantity. Finally, vector error correction model suggests that the supply quantity leads the price in the short-run. This indicates that the decrease(increase) of the supply quantity results in the increase(decrease) of the price.
An Analysis on Shadow Price, Substitutability, and Productivity Growth Effect of Non-Priced Renewable Energy in the Korean Manufacturing Industries
Lee, Myunghun ;
Environmental and Resource Economics Review, volume 24, issue 4, 2015, Pages 727~745
DOI : 10.15266/KEREA.2015.24.4.727
This paper analyzes the firms' optimization behavior in response to rising demand for non-priced renewable energy in the manufacturing industries by using an input distance function. The annual estimates of the shadow price of renewable energy is derived and the trend of its shadow price over time is analyzed. The degree of substitution of renewable energy for fossil-fuels is examined. The input-based Malmquist productivity index, defined as a composite of the technical efficiency and technical change measures, is measured. The contribution of renewable energy input growth to the Malmquist index is analyzed. Empirical results indicate that the shadow price of renewable energy declined at an average annual rate of 17% over the period 1992-2012. Substitutability between renewable energy and fossil-fuels was limited. On average, a 1% increase in renewable energy would decrease Malmquist index by 0.04% per year.
The Impact of Unit Pricing System on the Demand for Solid Waste Disposal, Food Waste Disposal, and Recyclables
Hong, Seonghoon ;
Environmental and Resource Economics Review, volume 24, issue 4, 2015, Pages 747~761
DOI : 10.15266/KEREA.2015.24.4.747
This paper investigates the impact of an increase in unit price of solid waste collection on demand for alternative solid waste disposal types. I control for other variables affecting the demand and employ both community and time fixed effects models in the estimation of each reduced-form demand functions. Estimation results show that an increase in unit price reduces the demand for garbage bag collection services of non-food solid wastes while it increases the demand for food wastes and source-separated recyclables. These results imply that reduction in the demand for non-food solid wastes collection is mainly achieved by increasing the amount of recyclables and food wastes collected. However, it appears that an increase in unit price increases the total amount of solid wastes generated. This suggests that price incentive effects are offset by the decrease in source-reduction efforts because of feedback effects resulting from the increase in recycling, food waste separation, and illegal disposal of wastes.