• Journal of Korea Water Resources Association
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• v.39 no.12 s.173
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• pp.1057-1066
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• 2006

Water is an indispensable input to human's existence and industrial production. A water supply project would demand considerable costs, but produce economic benefits, which are importantly utilized in the project evaluation. In this situation, this study attempts to value the economic benefits from the residential water supply in Seoul. In particular, yearly consumer surplus and economic value of water supply for eleven water authority agencies in Seoul are measured during the period 2001-2004. Information on price elasticity required in calculating consumer surplus is obtained from direct estimation of the residential water demand function, and the consumer surplus is assessed by using a recently developed formula. Price elasticities used here are -0.810 and -1.011, and the estimated consumer surplus and economic value amount to 131.9 to 164.6 billion won and 398.6 to 431.3 billion won, respectively.

• Journal of Energy Engineering
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• v.24 no.2
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• pp.9-16
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• 2015

As electricity is an indispensable input to human's existence and industrial production, economic benefits arise from consumption. The economic benefits of the electricity consumption are useful information in various fields of electricity-related policy. Therefore, this study attempts to value the economic benefits from electricity use. The economic benefit of electricity consumed is the area under the demand curve which made of the sum of the actual consumer expenditure and the consumer surplus. Consumer expenditure can be easily observed but the information on price elasticity of demand is necessarily required to compute consumer surplus. This study derives the estimates for price elasticities through literature review. The price elasticities of the electricity demand for residence, industry, and commercial are estimated to be -0.332, -0.351, and -0.263, respectively. Because the consumer surplus of the electricity consumption for residence, industry, and commercial are computed to be 191.54, 143.44, and 231.91 won per kWh, respectively. Given that average prices of electricity use were 127.02, 100.70, and 121.98 won per kWh for the year 2013, the economic benefit are calculated to be 318.56, 244.14, and 353.89 won per kWh, respectively. We can convert the values to 321.96, 246.75, and 357.67 won per kWh in 2014 constant price, respectively, using consumer price index. They can be used in the economic feasibility analysis of a new electricity supply project.

• Journal of Energy Engineering
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• v.21 no.3
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• pp.301-308
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• 2012

This paper attempts to estimate the demand function for the transport LPG and to analyze long-run and short-run price and income elasticities. In addition, the paper measures consumer surplus and economic value ensuing from the transport LPG consumption by utilizing the estimated long-run price elasticity. The price and the income data are the monthly real transport LPG price and the monthly composite index adjusted by real transport LPG price from 2003 to 2012. Unit root test, co-integration test and error correction model are to take the procedure of estimation of demand curve. The demand for transport LPG is considered to be inelastic and the long-run demand is more elasticity than that of short-run. Price elasticity of demand estimate here is -0.422, and the estimated consumer surplus and economic value in 2010/03 are 966 and 1,781 billion won, respectively.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2003.11a
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• pp.276-279
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• 2003

전력산업의 구조개편에서 발전사업자에게 용량가치를 보상해 주는 것은 현물시장에서 발전용량을 줄임으로써 가격 상승을 유도하여 수익을 높이는 등의 전략적 행동을 줄임과 동시에 발전회사의 단기적인 이윤 추구 및 경쟁에 의해서 저해될 수 있는 장기적인 투자를 유도하기 위한 것이다. 이 논문에서는 용량가치 보상 메커니즘을 용량가격이 생산량에 따라 변화하는 부분과 변화하지 않는 부분으로 나누고 대칭적인 복점시장 상황을 상정하여, 수요특성과 시장의 경쟁정도 및 소비자 잉여의 중요성 등에 따라서 용량가치 보상 메커니즘이 사회후생에 어떤 영향을 미치는지에 대해서 분석하였다. 결과적으로, 용량가치 보상에 의해서 사회 후생이 증가할 수 있으며, 소비자 잉여를 중시할수록 용량가격이 생산량에 따라 변화하는 메커니즘이 효과적이고, 경쟁 형태 및 정도에 따라서 용량가치 보상 메커니즘의 형태가 달라져야 함을 보였다.

• Journal of the Korean Society for Library and Information Science
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• v.40 no.2
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• pp.243-261
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• 2006

Variety methods are applied to estimating the value of a public library. This study explored the methods valuing of a public library focused on the consumer surplus and contingent valuation and measured the direct economic value of a public library by using these methods. 84% of the respondents are perceived that public library impact their life. And the users indicated that they are willing to pay 8,720 won per month to use a public library and 1,470 won to borrow a book from the library. Given reasonable assumptions about the cost of service, users place a value on the use of a public library is 1/3 times, the borrowing a book from the library is 3 times.

• Environmental and Resource Economics Review
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• v.21 no.4
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• pp.981-998
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• 2012

In this paper, several count data model of travel cost recreation demand with Poisson and negative binominal specification are applied to estimate the value of access to the estuary area of Yeongsan river from visitor survey data. The results show that the negative binomial model that accounts for truncation and overdispersion provides the better goodness-of-fit, and therefore the value per visit(i.e. consumer surplus) is 89,350 won for resident of Jeolla province and 432,526 won for that of other provinces. If don't correct overdispersion by relying on Poisson estimates, the consumer surplus will be underestimated. Whereas the consumer surplus will be overestimated unless correct truncation by using estimates of untruncated models. As a result, the truncated negative binomial model should be applied to estimate the travel demand and the consumer surplus per visit by using survey data from single site visitors.

• Journal of Korea Water Resources Association
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• v.43 no.11
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• pp.957-965
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• 2010

The municipal water is directly related to the people's quality of life. To examine and implement reasonable water policies including management of the water demand and economically sound investment decisions, it is essential to estimate the conceptually correct and empirically valid economic value of water. This study attempts to estimate the consumer surplus and economic value of municipal water which is supplied to 16 cities in Korea using demand curve approach. The results indicate that the consumer surplus and economic value of municipal water in 2009 are estimated as KRW 1,180.7 per $m^3$ and KRW 1,812.8 per $m^3$, respectively. The economic values of municipal water in 16 cities range from KRW 1,082.7 per $m^3$ to KRW 3,268.6 per $m^3$. Moreover, the economic value of non-residential water is higher than that of residential water in all cities, and the economic value of water is higher than the present price of water. This study is expected to provide policy-makers with useful information to assess a policy and to evaluate the price of water.

• Archives of design research
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• v.15 no.3
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• pp.157-166
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• 2002

This research verified advertising effect according to ad information format and layout based on resource-matching theory. Existing researches suggested inconsistent results that it's effective to design advertising easy to understand by using factual information presentation and integrated layout or it's effective do design difficult advertising to understand by using explanatory information presestation and separate layout. The result of this study suggest that advertising effect by advertising design style is different according to situational elements such as motivation level of information processing and brand hierarchy. The results show that, in the high prestige brand, easily designed advertising using factual information presentation and integrated layout is more effective because consumers make favorable inference by remained cognitive resources. Contrary to this in the low prestige brand, not easily designed advertising using explanatory information and separate layout is more effective because consumers have no remained cognitive resources so that they concentrate on advertising itself.

• Environmental and Resource Economics Review
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• v.20 no.4
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• pp.689-733
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• 2011

This study evaluates a novel scheme to trade sulfur dioxide emission permits subject to non-uniform rates. These rates are based on generators' marginal costs of compliance with environmental policy in a hypothesized least social-cost solution. This scheme is compared against the existing trading program used by the U.S. Environmental Protection Agency, featuring permits tradable one for one. Both policies are modeled to yield identical aggregate emissions. A numerical partial-equilibrium model of the U.S. energy industry is used to infer sulfur dioxide concentrations and health damages, as well as producer and consumer surplus, under the two policies. Regional pollution levels are found to vary across the two policies significantly. The system of exchange rates is estimated to outperform the uniform-trading scheme by $2.2 billion in industry profits and $2.1 billion in health damages, but to reduce consumer surplus by $6.7 billion. Paradoxically, exchange rates are thus estimated to lower total welfare by $2.5 billion. This is due to conceptual mechanism-design problems, as well as empirical issues.

• The Journal of the Korea Contents Association
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• v.10 no.2
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• pp.412-420
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• 2010

With increased complexity of product and market, the phenomenon that a consumer get paradoxical attitude toward marketing object has been increased. And this phenomenon eventually affects the relationship between consumer and product. In this study we tried to find more paradoxical phenomenon and understand consumer behavior confronting these situations when they buy agro-product based on ground theory methodology. According to the results, consumer's expectation and purchase experience can promote quality paradox experience during confronting various marketing activities such as price, product, promotion, place. Also these experience can cause quality paradox related interaction and communication even though there could be differences in their experience according to demographic characteristics, personal preference, and risk perception. Consumer will develop multiple strategies against quality paradox to manage the uncomfortable paradox experiences.