• Environmental and Resource Economics Review
• /
• v.15 no.2
• /
• pp.177-200
• /
• 2006

The demand for the study about the pollution haven activities under increasing return to scale is increasing since the trade theory under increasing return to scale has been developed. In this paper, based on Davis (1998)'s argument about home market effect, pollution haven activities under increasing return to scale is developed. The result shows that pollution haven effect can be identified with the high trade barriers. When the trade barriers are lowered, both pollution haven effect of heavy polluted industries and migration of low polluted industries are mixed together. Even the behavior under pollution haven hypothesis and that of pollution haven effects are co-existed. Therefore, to keep both environmental protection and continuous economic development, the local government of the region with high environment preservation value encourages the productivity increase of the environmental technique.

• Environmental and Resource Economics Review
• /
• v.22 no.4
• /
• pp.691-726
• /
• 2013

We develop a hybrid model which allows the change in electricity generation mix by adding the electricity-sector components of bottom-up model to the conventional CGE model. The electricity sector is represented as a sum of separate generation technologies, each of which has the form of DRTS (Decreasing Returns to Scale) production function, unlike the conventional CGE model. We compare the effects of the 30% emission reduction target using the hybrid model with those using the conventional CGE model. The cost of meeting the target is lower with the hybrid model than the conventional CGE. It is consistent with previous studies in that adding the bottom-up components to the top-down model reduces the cost of emission reduction. In an extra analysis we find that an additional regulation like RPS (Renewable Portfolio Standard) increases the cost.

• Journal of Biosystems Engineering
• /
• v.20 no.1
• /
• pp.22-35
• /
• 1995

Pepper is the most important horticultural plant in Korean farm. Pepper harvesting has been known to be the most difficult process in pepper cultivation so that demand for mechanization is strong. In a research to develop a pepper harvesting machine performance and capacity of the harvester should be determined based on both economical feasibility and machine design concept. In order to accomplish an economical analysis of the pepper harvester, a mathematical model for comparing manual harvesting cost to machine harvest cost was developed. Validity of the model depends on the data used in the model. Economical information for the model variables was acquired from the result of farm survey on pepper cultivation technique and economics of pepper farmer. Technical information on pepper harvester were also collected through literature review and analyzed. Based on the economical analysis and synthesis of the technical information on pepper harvesters, its performance and capacity were determined. The operating performances of the harvester such as cutting, conveying, flipping, pepper removing and post-processing (sorting) were determined. Daisy capacity of the machine was determined to be 0.41 ha. A pepper harvester with the suggested capacity was economically feasible if the price of pepper harvester, pepper recovery ratio and service life of harvester were about 6 million won, 80%, and 4 years, respectively.

• Environmental and Resource Economics Review
• /
• v.19 no.3
• /
• pp.597-632
• /
• 2010

There is general agreement that global warming is occurring and that the main contributor to this probably is the buildup of green house gasses, GHG, in the atmosphere. Two main contributors are the utilization of fossil fuels and the deforestation of many regions of the world. The burning of fossil fuels increases atmospheric carbon while the burning of fuel-wood reducing fossil fuel consumption along with its forest source maintain an atmospheric carbon level. The standing timber in the forests is a carbon sink, as are wood buildings and structures, and fossil fuel in the ground. This paper is designed to examine a number of current issues related to mitigating the global warming problem through forestry. For this purpose, we develop a modeling approach by integrating timber market, fossil fuel market and carbon cycling model. We use discrete time optimal control theory to identify optimal time paths, the laws of motion, and stationary stats solutions of endogenous variables in the model. On the basis of these results, we identify the optimal amounts of subsidies to be provided or taxes to be imposed by the regulatory agency to mitigate atmospheric carbon accumulation. We also present a numerical example to help illustrate the characteristics of variables in the model when the social cost for atmospheric carbon incrementally shifts upward. A surprising result is that the social cost function for atmospheric carbon has a very smaller impact on the optimal rotation period than previous literature suggested.

• Journal of Biosystems Engineering
• /
• v.16 no.4
• /
• pp.384-398
• /
• 1991

A computer program was developed to select the optimum size of farm machine and analyze its operation costs according to various farming conditions. It was written in FORTRAN 77 and BASIC languages and can be run on any personal computer having Korean Standard Complete Type and Korean Language Code. The program was developed as a user-friendly type so that users can carry out easily the costs analysis for the whole farm work or respective operation in rice production, and for plowing, rotarying and pest controlling in upland. The program can analyze simultaneously three different machines in plowing & rotarying and two machines in transplanting, pest controlling and harvesting operations. The input data are the sizes of arable lands, possible working days and number of laborers during the opimum working period, and custom rates varying depending on regions and individual farming conditions. We can find out the results such as the selected optimum combination farm machines, the overs and shorts of working days relative to the planned working period, capacities of the machines, break-even points by custom rate, fixed costs for a month, and utilization costs in a hectare.

• Journal of Korea Technology Innovation Society
• /
• v.11 no.2
• /
• pp.145-170
• /
• 2008

The existence of network is indeed the single most important factor that brings about new business phenomena in the new digital economy, especially in the IT industry. Network effect refers to a phenomenon that the increase in size of the network leads to increased network value and user utility. It determines the competitive structure of an industry and the performances of industry competitors (Shapiro and Varian, 1999). The phenomenon of increasing returns and winner-take-all enjoyed by the early winner in the competition can be attributed to the existence of positive feedback which increases the value of network and induces more users into join the network (Arthur, 1996; Shapiro and Varian, 1999; Song and Lee, 2003). This research attempts to shed light on the topic of innovation and competitive strategy of network-based industries. We analyze the case of the Korean mobile communications industry, in which a shift in technological paradigm from 2G to 3G brought new changes to the competitive structure of the industry. The Korean mobile communications industry makes an ideal case for analysis since it is an industry whose value is inherently dependent upon its user network. It is characterized by the typical increasing returns, in which a monopolizing player is enjoying firstmover's network effects. Because of the existence of network in the mobile communications industry, latecomers' disruptive innovations could not outcompete the incumbent's sustaining innovations. The contribution of this research lies in laying a groundwork for future studies by introducing a numerical simulation model to analyze the complexity theory and network effect.