• Environmental and Resource Economics Review
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• v.12 no.2
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• pp.245-274
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• 2003

This paper analyzes the economic and environmental impacts of domestic policy to reduce greenhouse gas emissions by focusing on carbon tax, domestic emissions trading and the mixture of these policies. By utilizing a dynamic CGE model, KORTEM, this study shows that the economic cost under carbon tax is projected to be higher than that under emission trading. It is because under carbon tax scheme each emitter in economy must meet its emission target regardless of the abatement cost. On the other hand, emission trading allows emitters to reduce the marginal cost of abatement through trading of emission permits. In designing policy portfolio to address the climate change problem in Korea, therefore, this paper proposes the introduction of domestic emission trading scheme as the main domestic policy Instrument.

• Korea Trade Review
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• v.45 no.1
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• pp.137-153
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• 2020

On February 14, 2019, the government of Korea formally decided to consider the feasibility of joining the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and has since been conducting bilateral consultations with individual member countries. In terms of the impact estimation, the CPTPP is actually a Korea-Japan FTA, and the most sensitive issue in the FTA is the opening of the auto industry market to Japan. Despite these circumstances, previous studies have predicted that the auto industry will be a beneficiary industry when joining the CPTPP. However, the Korean auto industry is opposed to joining the CPTPP. In order to investigate the cause of this discrepancy, this paper examines the problems of previous studies in estimating the impact of joining the CPTPP and found that the preceding study did not consider the industrial characteristics of the auto sector, especially in the context of Japan-Korea trade, and was heavily dependent on the Armington elasticity (structure) in the demand function of the GTAP CGE model. As a result, the domestic auto sector could lower prices and increase exports when joining the CPTPP. This paper attempts to precisely re-estimate the impact of joining the CPTPP on the auto sector in a way that corrects these problems by changing the CGE model and reflecting the major characteristics of the industry, with policy implications for the negotiation of CPTPP accession.

• Environmental and Resource Economics Review
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• v.15 no.4
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• pp.591-642
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• 2006

This paper intends to analyze economic impacts of commitment period and initial allocation in emissions trading using computable general equilibrium (CGE) modeling. The fully dynamic CGE model with perfect foresight assumption is employed to illustrate (i) how a model displays economic impact of $CO_2$ regulation upon different commitment periods: one-year budget clearing vs. 5-year commitment period, (ii) how major 8 energy-intensive industries respond to different ways to allocate initial allowances. According to the results of the analysis, it IS found that market players are motivated to bank the permits and tend to sell permits in earlier stage and to buy permits in later stage of commitment period. This implies that banking allows permit trading within a commitment period, which supports the conclusions of Kling and Rubin (1997). Other findings are related to efficiency. That is, emissions trading surpasses command and control, in terms of economic efficiency and longer terms of commitment period converge on lower permit price, In long term, initial allocation based on value-added performs the lowest GDP loss among different initial allocations.

• International Area Studies Review
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• v.15 no.3
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• pp.95-126
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• 2011

The objective of this study is to quantify the potential economic effects of Non-Agricultural Market Access (NAMA) negotiations of the WTO on automotive industry of the world using a multi-region, multi-sector Computable General Equilibrium (CGE) model with 21 countries/regions and 22 sectors. According to the December 2008 NAMA modalities text, issued by the chair of the negotiation on NAMA, three different scenarios of tariff liberalization of NAMA are conducted on the basis of the Swiss formula with a coefficient of 8 for developed members and 20 for developing (scenario 1), with a coefficient of 8 for developed members and 22 for developing (scenario 2) and with a coefficient of 8 for developed members and 25 for developing (scenario 3). Simulation results show potential economic effects at the macroeconomic and microeconomic level of 21 countries concerned. In particular, Korea is to be one of the winners of tariff liberalization of NAMA in the WTO and Korean automotive industry is to benefit from it to a large extent in terms of its output, domestic sales, exports and trade balance, which implies that Korea needs to actively engage in NAMA negotiations of the WTO.

• Environmental and Resource Economics Review
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• v.30 no.2
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• pp.269-297
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• 2021

Bioplastics are attracting attention as a substitute for conventional petroleum-based plastics because they are carbon neutral and can be biodegradable. This study estimated economic and environmental impact of regulating the petroleum-based plastics industry and fostering the bioplastics industry using a Recursive Dynamic CGE Model of the Korean Economy. Results show that the regulation of the conventional plastics industry exhibits a positive environmental impact by reducing greenhouse gases and plastic waste and a negative economic impact with a decrease in GDP. Meanwhile, fostering the bioplastics industry with regulation on conventional plastics industry has similar levels of greenhouse gas and waste reduction effects when there is only regulation on the conventional plastics industry. It is also shown that expanding the production of bioplastics industry offsets existing economic losses as a form of increased GDP. If petroleum-based plastics are replaced through the expansion of bioplastics production, it can contribute to the decoupling of greenhouse gas emissions and plastic waste from economic growth.

• Journal of Korea Trade
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• v.27 no.5
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• pp.137-152
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• 2023

Purpose - Although many existing studies on the US-China hegemonic conflict and decoupling have been published, most of them are qualitative and use descriptive analysis methods. Papers that quantitatively analyzed decoupling mainly estimate the effect of a tariff increase. However, this paper quantitatively analyzed the ripple effect by focusing on decoupling technology spillover between the United States and China. And, for the first time, it was suggested that the blocking of technology spillover could give a fatal blow to the East Asian economy as well as China. Design/methodology - The United States is pursuing decoupling with China, primarily in goods trade and blocking technology transfer. This paper sets up various scenarios and uses three computational general equilibrium (CGE) models to analyze the overall ripple effects of decoupling. A paper using the three CGE models for decoupling ripple effect analysis has not yet been published. Findings - Decoupling will hit the economies of regions with close economic ties to China more than others. According to simulation results of this study, the Chinese economy may suffer severe damage that is difficult to recover from, and the economies of Asian countries are predicted to deteriorate to the point of being choked. Originality/value - Existing papers that assessed the effect of decoupling mostly focus on estimating the effect itself through tariff hikes. This paper is meaningful in that it comprehensively analyzed decoupling by adding the effect of technology spillover blockade. In addition, another meaning can be found in that it quantified for the first time that it will deal a huge blow to the extent of choking the East Asian economy as well as China.

• Environmental and Resource Economics Review
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• v.16 no.1
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• pp.129-169
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• 2007

The purpose of this study is to experiment and simulate the newly-updated Second Generation Model for Korea (SGM-Korea). With the updated model, we tried to simulate effect of carbon tax on $CO_2$ emissions and other macroeconomic variables for Korea. The baseline data are compared with projected profiles by various scenarios to evaluate its performance. Our contribution in this study is to having up-graded the model from its earlier version by building new hybrid input-output table based on 2000 input-output and energy balanced tables. According to our estimation, total $CO_2$ emission in Korea has already increased in 2000 to about 1.86 times the 1990 figure. The level of carbon tax required for the current level of $CO_2$ emission to be reduced to the 1995 or 2000 level seems to be too high for Korean economy to bear. It is possible to find a reasonable level of carbon tax, however, if it can combine it with improvement of energy efficiency at the rate of 0.5% to 1% per year. For Korea to meet its obligation to reduce $CO_2$ emissions, therefore, it is imperative for her to improve energy efficiency as well as to develop alternative energy source reducing its dependence on fossil fuel.

• The Korea Journal of Herbology
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• v.32 no.5
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• pp.27-38
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• 2017

Objective : In the present study, we examined whether Canavalia gladiata D.C. (CG) and Arctium lappa L., Redix (AL) mixture (CGAL), their components, lupeol and chicoric acid, regulate immune system and suppress the tumor in vitro and in vivo. Methods : LPS-induced reactive oxygen species (ROS) and nitric oxide (NO) were measured after treatment with CG extract (CGE), CGAL, lupeol, chicoric acid and lupeol and chicoric acid mixture (lupeol+CA) in Raw264.7 cell. To determine the effect of CGE on immune responses, immune cell population and IgG production were assessed in mice. To investigate the effect of CGAL and their component on anti-tumor activity, tumor volume and weight were measured, cell cycles and immune cell population were analyzed in MC38 injected tumor bearing mice. Also, NK cell activity was determined in splenocyte isolated from tumor bearing mice. Results : CGE, CGAL, lupeol, chicoric acid and lupeol+CA decreased the LPS-induced ROS and NO production without cell toxicity in RAW264.7 cells. CGE increased the immune cell populations of $CD4^+T$, $CD8^+T$ and macrophages in various immune organ of mice. In tumor bearing mice, CGAL, lupeol, chicoric acid and lupeol+CA suppressed tumor volume and weight. In cell cycle analysis, they decreased the percentages of S phase. In addition, CGAL, lupeol, chicoric acid and lupeol+CA immune cell populations of $CD4^+T$, $CD8^+Tcell$, NK cell and macrophage in tumor as well as NK cell activity. Conclusion : CGAL and its compounds may enhance immune responses and suppress tumor growth, and may be capable of developing health functional foods.

• East Asian Economic Review
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• v.22 no.2
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• pp.177-215
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• 2018

Trump's withdrawal from the Trans-Pacific Partnership (TPP) and his "America First" trade agenda ignite a second round of interest in mega-free trade agreements in the Asia-Pacific. Countries are evaluating alternative trade policy actions in a post-TPP era. Using national real GDP gains estimated by a modified GTAP model to construct "preference ordering" for 10 Association of Southeast Asian Nations members and their six regional dialogue partners, this paper comes up with several policy-oriented findings. First, when multilateral agreements are not possible, countries are better off with a regional trading agreement than without one. Second, the Regional Comprehensive Economic Partnership is likely to have higher beneficial impacts than the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Third, for dual-track countries, implementing both agreements is better than each separately. Fourth, impacts of open regionalism are likely to be higher than those of a closed and reciprocal one. Going forward, this paper argues that countries should adopt a "multi-track, multi-stage" approach to trade policy.

• Environmental and Resource Economics Review
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• v.16 no.1
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• pp.27-63
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• 2007

Using the CGE model, this paper investigates economic impacts of a shortage in crude oil resulting from voluntary export restraints, OPEC's agreement of a cut in oil production, and/or a storing on speculation. Unlike most previous studies considering oil price as the unpredictable variable, this study constructs the model to determine the oil price endogenously under the condition of an insufficient supply of crude oil. According to IEA's extraordinary steps for a shortage of crude oil, we investigate an economic impact of 7~12% shortage below the level of business as usual. The results show that oil price soars by 17.3~33.5%, the rate of economic growth falls by 0.52~0.96%p, and the consumer price index(CPI) rises by 0.8~1.51%p. These results imply that increasing in 1%p of oil price results in decreasing in 0.03%p of economic growth and increasing in 0.045%p of consumer price index. The production of electricity declines because of the increase in production cost. A shortage of crude oil has an effect on sources of electricity. Most reduction in electricity generation occurs from the reduction in the thermal power generation which is highly dependent on crude oil. The shortage of crude oil causes demand for petroleum to significantly decline but demand for coal and heat to increase because of the substitution effect with petroleum. Demand for gas rise in the first year but falls from the second year.