• Journal of Environmental Policy
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• v.9 no.4
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• pp.3-27
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• 2010

In this paper, we have analyzed the cost structure of the Korean manufacturing industry in relation to the central government's environmental investment(CGEI below) by applying translog variable cost function. Important findings are as follows. First, sufficiency degree of CGEI of 0.7230, less than optimal level of 1, causes production inefficiency. Therefore, central government should forward a strategy to raise CGEI to meet appropriate standards. In addition, inspite of the deficiency of CGEI, shadow priceis lower than market price due to q-value of 0.9572, yielding unfavorable conditions for CGEI. However, CGEI brings about increase in output, variable cost saving, and economies of scale of firms. Second, by comparing this study with an existing study(2010), we have discovered the following facts. In both studies, we find that there are deficiency of investment, unfavorable conditions in investment, economies of scale, and output increase due to investment. However, the current study has found that, CGEI, which shows efficiency by positive(+) shadow price, saves variable cost. Therefore, firms suffer from production inefficiency due to variable cost caused by a shortage of efficient CGEI. Moreover, the previous study conducted in 2010 found that investment in prevention of environmental pollution(IPEP below), which indicates inefficiency by negative(-) shadow price, cannot reduce variable cost. In such circumstances, firms yield abnormal production efficiency based on variable cost savings caused by inefficient IPEP. For this reason, firms should raise IPEP to optimal level to reduce IPEP inefficiency to achieve production efficiency by reducing variable cost.

• Journal of Environmental Policy
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• v.10 no.2
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• pp.61-92
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• 2011

We analyzed the efficiency of environment investments by taking examples of central government's environmental investment (CGEI hereafter) and investment in prevention of environmental pollution (IPEP hereafter). We expanded the scope of existing studies by decomposing the internal rate of return (IRR hereafter) and present value of benefit (Bpv hereafter) into variable cost (VC hereafter) reduction, investment cost reduction (STC-VC hereafter), and rent. And we found that Bpv checks only the magnitude of benefit, while IRR indicates the existence of efficiency by investigating short-run total cost (STC hereafter) reduction and rent. Finally, by analyzing investment efficiency and changing benefit with respect to CGEI and IPEP through the investment efficiency methodology that compares IRR with market interest rate, we executed retrospective benefit-cost analysis. Accordingly, CGEI and IPEP are not efficient. However, IPEP is even more inefficient than CGEI.

• Journal of Environmental Policy
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• v.12 no.2
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• pp.33-57
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• 2013

This paper test the relationship among determinants of environmental investments, level of environmental investments, eco-efficiency (carbon productivity). The results show that profitability, leverage and R&D costs have a negative impact on environmental investments, and controlling ownership have a positive impact on environmental investments as well as environmental protection costs. The analysis also show that firms increasing environmental investments are able to gain superior environmental performance ($CO_2$ emission), but are negatively relationship with financial performance. Finally, the findings prove that differences exist in the relationship between determinants and effect of environmental investments when grouped by industry characteristics.

• Environmental and Resource Economics Review
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• v.21 no.2
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• pp.301-319
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• 2012

The primary purpose of Renewable Portfolio Standard (RPS) is to facilitate investment in renewable energy technology. Since emission trading program has similar purpose, it is conceivable to attempt to link RPS and emission trading program through interlinked markets. RPS in Korea with single REC and emission allowance markets has particular advantages for constructing linkages between two markets. This paper provides a real option model to examine investment effects of linkage of RPS to the trading program. Emission permit price and REC price are assumed to follow stochastic processes and renewable investment is irreversible. The result shows that linked market provides further incentive for renewable investment by raising managerial flexibility for power companies.

• Journal of Korean Electronics
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• v.16 no.10
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• pp.79-81
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• 1996

• Bulletin of Korea Environmental Preservation Association
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• v.8 no.18
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• pp.28-31
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• 1986

• Bulletin of Korea Environmental Preservation Association
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• v.8 no.19
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• pp.31-37
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• 1986

• Bulletin of Korea Environmental Preservation Association
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• v.8 no.15
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• pp.41-46
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• 1986

• Bulletin of Korea Environmental Preservation Association
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• v.8 no.16
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• pp.30-33
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• 1986

• International Commerce and Information Review
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• v.15 no.4
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• pp.217-240
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• 2013

The investment environment in Korea and U.S. dramatically changed since Korea-US FTA. The key reasons for this successful change were liberalization and strengthened protection of investment along with trade liberalization which also brought investment market expansion. As the result of trade-diversion effect, investments between two countries have been enormously increased. Through a FTA with the big economy like US, Korea's FTA network has been largely expanded. Korea further needs to utilize this outcome when competing with other countries in investment markets.