Browse > Article
http://dx.doi.org/10.15266/KEREA.2019.28.1.039

A Study on Auction Mechanism for DMZ Conservation using the South-North Korean Economic Development Projects  

Park, Hojeong (Department of Food and Resource Economics and KU.KIST GREEN School, Korea University)
Kim, Joonsoon (Department of Forest Sciences, Kangwon National University)
Kim, Hyunhee (Korea Environment Institute)
Publication Information
Environmental and Resource Economics Review / v.28, no.1, 2019 , pp. 39-59 More about this Journal
Abstract
The Korean Demilitarized Zone (DMZ) has the great ecosystem as all the artificial activities in DMZ have been prohibited over half a century. The ecosystem should be conserved even after the reunification of Korea and hence the conservation plan should be established not after the reunification but before it. It requires a considerable budget to conserve DMZ, considering management of ecology resource, recovery, and research. The objective of this paper is to analyze a fund-raising measure for DMZ conservation, using economic incentives mechanism when multiple developers participate in the auction to get the right to develop North Korean regions, have private information about their sunk costs and pay a part of their profits for the fund. First, we analyze the real option model to decide the optimal investment time. Second, we construct the auction for bidders not to misrepresent their private information, based on Bayesian Nash equilibrium.
Keywords
DMZ; Auction; North Korea development; Real options;
Citations & Related Records
연도 인용수 순위
  • Reference
1 김재한, "접경지역에서의 국제적 협력 사례연구", 21세기정치학회보, 제19권 제3호, 2009, pp. 305-328.
2 박은진, "세계의 평화공원 사례와 한반도 DMZ에 주는 시사점", 신뢰와 평화 희망의 DMZ 세계평화공원, 통일연구원, 2013, pp. 17-34
3 박은진.심숙경.이상대, 최용환, 황금회, "분단.대립 접경지역의 해외사례와 한반도 DMZ의 시사점", 이슈&진단, 제44호, 2012, pp. 1-25.
4 박은진.여인애, "한반도 비무장지대 일원 정책과 연구의 변화 및 시사점", 환경정책, 2018, pp. 19-45.
5 박호정, 실물옵션과 투자분석, 리얼포탈, 2018.
6 박호정.황의식, "실물옵션 모형을 이용한 농지보전 프로그램의 농업투자 효과분석", 농업경제연구, 제44권 제4호, 2003, pp. 121-139.
7 이동훈, "분쟁수역평화적이용사례-요르단과 이스라엘 윈-윈, '홍해해양평화공원'". 통일한국, 제26권 제5호, 2008, pp. 36-38.
8 이상현.박윤주, "에콰도르-페루 국경 분쟁의 결과와 의미", 이베로아메리카, 제17권 제1호, 2015, pp. 1-26.
9 장원근.최지연, "홍해해양평화공원 사례 분석 및 남북 접경지역 해양환경 협력 시사점", 월간 해양수산, 제252호, 2005, pp. 37-52.
10 Abhishek, V., B. Hajek and S. R. Williams, "Auctions with a Profit Sharing Contract," Games and Economic Behavior, Vol. 77, 2013, pp. 243-270.
11 Aradillas-Lopez, A., P. A. Haile, K. Hendricks and R. H. Porter, "Testing Competition in The United States Offshore Oil and Gas Lease Auctions," American Economic Association Annual Meeting, 2018.
12 Ausubel, L. M., Auction Theory for the New Economy. Palgrave, 2003.
13 Chang, F-R., Stochastic Optimization in Continuous Time, Cambridge, 2004.
14 Cong, L. W., Timing of auctions of real options. Chicago Booth, 2017. (https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2143929)
15 Cramton, P., R. Gibbons and P. Klemperer, "Dissolving a Partnership Efficienty", Econometrica, Vol. 55, No. 3, 1987, pp. 615-362.   DOI
16 Klemperer, P. D., The Economic Theory of Auctions, Edward Elgar, 2004.
17 DeMarzo, P., I. Kremer and A. Skrzypacz, "Bidding with Securities: Auctions and Security Design", American Economic Review, Vol. 95, No. 4, 2005, pp. 936-959.   DOI
18 Dixit, A. and R. Pindyck, Investment under Uncertainty, Cambridge University Press, 1994.
19 Holmes, T. J., B. Seo, and M. H. Shapiro, Leasing, Learning And Oil Field Development, Working Paper, 2014.
20 Krishna, V., Auction Theory, Academic Press, 2009.
21 Kustrova, M., "Military Training Areas: Places with High Nature Conservation Value", Economics and Management, Univerzita Obrany, 2013.
22 Maeland, J., Valuation of Irreversible Investments and Agency Problems, Innovation, Organization and Strategy (Trigeorgis, L.), Cambridge University Presss, 2002.
23 Posner, E. and E.G. Weyl, Radical Markets: Uprooting Capitalism and Democracy for a Just Society, Princeton University Press, 2018.
24 Weitzman, M., "Noah's Ark Problem," Econometrica, Vol. 66, No. 6. 1998, pp. 1279-1298.   DOI
25 Zmelik, K., S. Schindler and T. Wrbka, "The European Green Belt: International collboration in biodiversity research and nature conservation along the former Iron Curtain", Innovation: The European Journal of Social Science Resarch, Vol. 23, No. 3, 2011.
26 이스라엘 외교부 웹사이트 http://www.mfa.gov.il/mfa/foreignpolicy/peace/regional/pages/gulf%20of%20aqaba-%20environment.aspxSADC
27 UNESCO Transboundary Biosphere Reserves 웹사이트http://www.unesco.org/new/en/natural-sciences/environment/ecological-sciences/biosphere-reserves/transboundary-biosphere-reserves/
28 TFCA 웹사이트 https://www.sadc.int/themes/natural-resources/transfrontier-conservation-areas/
29 Grenadier, S. R. and N. Wang. "Investment Timing, Agency and Information", Journal of Financial Economics, Vol. 75, 2005, pp. 495-533.