• Journal of Energy Engineering
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• v.24 no.1
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• pp.58-68
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• 2015

A marginal abatement cost analysis has been conducted to analyze the effects of abatement measures on greenhouse gas (GHG) emissions for the Korean residential sector. A bottom-up model using MESSAGE has been developed by defining the energy demand and constructing the reference energy system for the residential sector. A great amount of activity data has also been analyzed. Abatement potentials and related costs of individual abatement measures are investigated. The result from the marginal abatement cost analysis may provide general guidelines and procedures for the establishment of GHG abatement polices.

• Proceedings of the Korea Water Resources Association Conference
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• 2010.05a
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• pp.383-387
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• 2010

산업 현장에서 용수는 필수적인 요소이다. 특히 안정적인 용수 공급이야말로 산업 활동을 지속적으로 이어가게 하는 중요한 요소이다. 본 연구에서는 용수 공급이 차질을 빚을 경우 발생하는 공급지장비용(Water Shortage Cost)을 산업연관구조를 분해하여 산출해보고자 한다. 연구 결과, 수도 공급이 예기치 않은 이유로 감축되거나 절수되어야 할 때, 수도 산업의 최종 수요 소비자에게 수도 공급을 감축시킨다면, 사회에 미치는 한계비용은 $m^3$당 903원 이하로 나타났다. 그 다음으로는 제일 낮은 가치 승수를 가진 섬유 가죽 산업이 타깃이 되어 수도 공급을 감축하게 되는데 이때 발생하는 공급지장한계비용은 $m^3$당 55,710원 이하가 된다. 다시 세 번째 타깃은 음식점 및 숙박 산업이 공급지장 타깃이 되며, 이의 공급지장한계비용은 $m^3$당 78,053원 이하가 된다. 수도 수요가 수도 공급보다 많아 공급지장상황이 지속적으로 발생하여 공급 감축 타깃이 농산품에 이르면, 공급지장한계비용이 $m^3$당 435,206원에 이르는 것으로 분석되었다.

• Journal of Energy Engineering
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• v.24 no.4
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• pp.146-158
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• 2015

A bottom-up approach has been conducted to estimate greenhouse gas (GHG) emission and to analyze the marginal abatement cost for the Korean horticulture energy sector. With the systematically derived activity and energy balance data, the BAUs have been estimated, along with the marginal abatement cost over the period 2010 through 2030. The result from the marginal abatement cost analysis may provide general guidelines and procedures for the establishment of GHG abatement polices.

• Environmental and Resource Economics Review
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• v.25 no.3
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• pp.403-419
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• 2016

Cap-and-trade policies that allow firms to trade emission allowances are designed to reduce emissions at least cost and are shown to be efficient when there is no uncertainty over emissions. This paper examines how uncertainty in emissions affects firms' decisions about permit purchase and abatement. The results show that whether firms abate more under uncertainty compared to a case with no uncertainty depends on the expected penalty cost and marginal abatement cost. If the expected marginal penalty cost is greater than the marginal abatement cost, the firm will choose to reduce emissions and abate more under uncertainty. When the expected marginal penalty is greater than the marginal cost of abatement, increases in uncertainty result in reduced emissions. This paper also examines whether the order of abatement and permit trading and the realization of uncertainty affect firms' decisions. The results show that total expected emissions are the same regardless of the order of moves.

• Journal of Environmental Policy
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• v.6 no.4
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• pp.55-81
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• 2007

Most studies on $CO_2$ abatement cost with a computational general equilibrium(CGE) model focus on a specific country. On the contrary, this study compares and analyses the $CO_2$ abatement cost functions across 20 countries, consisting of OECD countries, China and Brazil, with a CGE model. For this purpose, we estimate the GDP loss from $CO_2$ emission reduction, assuming the 4 sector model. Our findings show that those cost curves are convex but different among the countries. However, despite of the difference in the cost curios, we have found that one group of countries has the relatively constant average abatement cost and the other group has the increasing average cost. The reason why such a pattern occurs is explained in terms of the variations of value-added and $Co_2$ emission coefficient by sector across the countries. As an environmental policy implication, this study presents information about which country is similar to one another in terms of the abatement cost.

• Environmental and Resource Economics Review
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• v.14 no.2
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• pp.493-518
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• 2005

It has been taken for 10 years since Climate Change Convention could it be made. And Kyoto Protocol will come into force as an international law as from 16. Feb 2005. As based on it, Annex I countries will implement their mitigation projects on GHG reductions and press developing countries on GHG reduction target. Korea has not duty target on it yet. But it will be held a COP(Conference of Party) on negotiation for reduction target of second commitment period. If Korea has a real duty, Industry sector should reduce GHG emissions. Then Market mechanism will be need to introduce for this. This study started having a question "Is it possible to introduce emissions trading in Korea?". To solve the problem, this study analysed GHG emissions, marginal abatement cost, market price with 11 companies of industry (about 36% of Korea emissions). minus target is impossible to implement reduction target ver base year (2002). And emissions trading scheme also can't make the market without additional policy and measures. This study suggest that it is need to import credits and give a subsidy of government to encourage it. The imported credit can reduce the demand curve within the marginal abatement cost curves. But the effectiveness of credit is not the same as continually growth. As a result, Allowing 40% credit into emissions trading market is the best to reduce costs. However, a subsidy is the little bit difference. A subsidy make marginal abatement cost curves down for itself. Giving 30% for subsidy, it is the best. Considering both of importing credits and subsidy, it is the best effects in the reducing cost for company. especially 30% is the best effects respectively. This Study show that government wants to consider designing emissions trading, encourage participants competitiveness, and encourage the early action, government has to allow credit trading and give a subsidy to participants.

• Environmental and Resource Economics Review
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• v.22 no.3
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• pp.459-479
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• 2013

To assess the feasibility of 'low carbon, sustainable growth' policy pursued of the Chinese government, this paper first measures technical efficiency, $CO_2$ shadow prices, and indirect Morishima elasticity of substitution between capital and energy for 24 of manufacturing sectors in Beijing and Chongqing, in which China launched pilot carbon emissions trading scheme, by estimating the input distance function. Based on these results, then the potential for $CO_2$ reduction, cost savings from emissions trading, and the effectiveness of capital investment in reducing $CO_2$ are compared across industries and provinces. In 2010, manufacturing industries in Beijing and Chongqing could potentially reduce the largest $CO_2$ emissions, amounting 5.2 and 17 million tons, respectively, by achieving 100% technical efficiency. While, on average, Chongqing has a comparative advantage in the cost savings from carbon trading over Beijing, Beijing is more likely to reduce $CO_2$ by expanding capital investment.

• Environmental and Resource Economics Review
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• v.23 no.3
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• pp.453-472
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• 2014

Analyzing the effects of carbon emissions trading, which is scheduled to be introduced in Korea in 2015, requires an accurate assessment of $CO_2$ abatement costs by both industries and firms. Firms faced with regulatory constraints are unlikely to minimize their production costs due to rising production costs caused by allocative inefficiency of inputs. The use of a distance function would results in underestimation of $CO_2$ abatement costs, because it fails to capture the allocative distortion costs. Recognizing the disadvantage of the previous approach, first, this paper tests for allocative efficiency of input for the Korean steel industry over the period 1990-2010, then derives the marginal $CO_2$ abatement costs by applying a cost function approach. The hypothesis of allocative efficiency in inputs is rejected and the steel industry pays an annual average cost of 92,000 won in removing an additional ton of $CO_2$ over the sample period.

• Environmental and Resource Economics Review
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• v.18 no.3
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• pp.457-493
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• 2009

This paper evaluates major issues of Post-Kyoto negotiation of UNFCCC and conducted economic analysis by utilizing a computable general equilibrium(CGE) model(GTEM-KOR). It points three major agendas of the negotiation to be settled : (1) return of the US to GHG abatement commitment; (2) participation of developing countries in GHG abatement commitment; and (3) development of a comprehensive approach for post-Kyoto period. It also emphasizes the differentiation of developing countries and the type and strength of commitment as the negotiation issues for settlement of those agendas. The analysis by using GTEM-KOR shows the differentiation between developing countries based on per capita GDP and/or per capita emissions is inefficient in terms of global GHG emission reduction and it will exposure Korea to strong pressure of commitment relative to other developing countries. It also shows that the participation of developing countries such as China and India is one of the most important factors for the environmental effectiveness of the Post-Kyoto regime. It emphasizes that the relative strength of commitment and the scope of country participation rather than type of commitment are major components determining the economic and environmental effectiveness of the Post-Kyoto regime.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.31 no.1D
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• pp.111-117
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• 2011

In the wake of increased concerns on reduction of greenhouse emission which started with United Nation's Framework Convention on Climate Change (UNFCCC) and Kyoto protocol, Korean government is making various efforts under the represented slogan "Low Carbon, Green Growth". Therefore, it is inevitable that construction industry also follow the Korea government's slogan and the international trend in environmental problems. This study identified several main construction materials and equipments of civil construction projects and suggested a environmental cost estimation method and related estimation standards (Public and private owners are distinguished). A case analysis of a real road construction project is also performed and characteristics according to the owner type is compared. This study analyzed the environmental impact to total construction cost variations. In the result, public owner required 11~16% of extra budget and private owner required 19~22% of extra costs. This study is limited in consideration of environmental factors and carbon trading prices.