• Environmental and Resource Economics Review
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• v.25 no.3
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• pp.421-447
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• 2016

I examine the situation in which the players compete to obtain economic rents which is generated by the market-based environmental regulation, such as carbon taxes or tradable permit allocations. Drawing on contest theory, I employ the sharing rules which is devised to motivate players best effort, and consider two models in carbon taxes: one model with observable sharing rules and the other model with unobservable sharing rules. I show that, first, the overall welfare of carbon taxes is always less than that of tradable permit allocations under the model with observable sharing rules. Second, depending on the share of the preassigned allocation in tradable permit allocations, the overall welfare of carbon taxes may be larger than that of tradable permit allocations under the model with unobservable sharing rules.

• Environmental and Resource Economics Review
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• v.33 no.1
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• pp.87-112
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• 2024

This study estimates the regional input-output table and GHG emissions in 2019 and then analyzes the economic effects of carbon taxes by region and industry in Korea. The GHG emission, emission coefficient, and emission induction coefficient are estimated to be higher in manufacturing-oriented metropolitan provinces. The GHG emission coefficient in the same industry varies from region to region, which might reflect the standard of product classification, characteristics of production technology, and the regional differences in input structure. If a carbon tax is imposed, production costs are expected to increase and demand and production will decrease, especially in the manufacturing industry, which emits more GFG. On the other hand, the impact of carbon taxes on each region is not expected to vary significantly from region to region, which might be due to the fact that those differences are mitigated by industry-related effects. Since the impact of carbon taxes is expected to spread to the entire region, close cooperation between local governments is necessary in the process of implementing carbon neutrality in the future.

• Environmental and Resource Economics Review
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• v.9 no.5
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• pp.853-876
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• 2000

The purpose of this paper is to come up with the measures for sustainable development of the agricultural sector in store for the strengthened U.N. Framework Convention on Climate Change. We analyze the spillover effects of Methane and Nitrous Oxides taxes (carbon tax) on the Korean agricultural sector. Unlike the other sectors, the agricultural sector has a unique characteristic generating greenhouse gas in the process of production itself even without consuming much fossil fuel. In order to estimate the impacts of those taxes, non-linear optimization method has been used with various assumed scenarios. The production effect, income and' price effect, and greenhouse gas emission reduction effect in the agricultural sector have been estimated through this method. The empirical results show that the paddy sector has a bigger tax effect than the livestock sector. In the paddy sector, the carbon tax has more impacts in the suburban areas than in the rural areas, while the swine farming section in the livestock sector has a conspicuous income effect in the midst of low greenhouse gas emission effect. These results allude us to apply graded tax rates to the crop, the livestock, and the region of different kind. Even if the agricultural sector has a less tax effect when compared with other industrial sectors, an environmental tax might be an effective measure to prevent global warming.

• Korean Chemical Engineering Research
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• v.50 no.3
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• pp.471-478
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• 2012

A carbon capture and storage (CCS) plays a very important role to reduce $CO_2$ dramatically in $CO_2$ emission sources which are distributed throughout various areas. Numerous research works have been undertaken to analyze the techno-economic feasibility of planning the CCS infrastructure. However, uncertainties such as $CO_2$ emissions, $CO_2$ reduction costs, and carbon taxes may exist in various impact factors of the CCS infrastructure. However, few research works have adopted these uncertainties in designing the CCS infrastructure. In this study, a two-stage stochastic programming model is developed for planning the CCS infrastructure under uncertain operating costs and carbon taxes. It can help determine where and how much $CO_2$ to capture, store or transport for the purpose of minimizing the total annual $CO_2$ reduction cost in handling the uncertainties while meeting the $CO_2$ mitigation target. The capability of the proposed model to provide correct decisions despite changing the operating costs and carbon taxes is tested by applying it to a real case study based on Korea. The results will help to determine planning of a CCS infrastructure under uncertain environments.

• Nuclear Engineering and Technology
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• v.56 no.1
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• pp.180-188
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• 2024

This research examined consumption-based carbon emission reduction by nuclear energy consumption and environmental tax while considering the context of trade globalization in the highest five emitter nations from 1990 to 2020. This study used various empirical methodologies, including preliminary analysis to check the stationarity and cointegration, the CS-ARDL for long-run analysis, CCEMG, AMG for robustness, and the D-H causality test for short-term pairwise causation. The results indicated that nuclear energy consumption, environmental tax, and trade globalization help to mitigate consumption-based carbon emissions while economic growth and population density boost carbon emissions. Furthermore, the results also found two-way casual connection exists between nuclear energy consumption, population density, and consumption-based carbon emissions. Thus, the results emphasize the need for government policies that encourage nuclear energy and environmental tax as a strategy to reduce carbon emissions and achieve and maintain environmental development.

• Korean Journal of Organic Agriculture
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• v.24 no.2
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• pp.201-219
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• 2016

To internalize climate-related external costs from agricultural production and food consumption Pigou taxes and carbon credits increase private costs for food. Voluntary GHG reduction program for carbon-neutral food can be advantageous over such policy measures since they avoid higher food prices for the poor. The pilot project of low-carbon agriculture certification system is to reduce GHG emissions from agricultural production and enhance the competitiveness of domestic agricultural products. This study examines producers', distributors', and consumers' perceptions of the low-carbon agriculture certification system and analyzes alternatives to promote the low-carbon certificated agricultural products.

• Journal of Korea Society of Industrial Information Systems
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• v.28 no.6
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• pp.115-129
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• 2023

This study compares and analyzes domestic and international carbon prices through CPS, which represents the level of carbon pricing. The results show that countries implementing carbon taxes had lower carbon intensity compared to those that did not. The introduction of a carbon tax is expected to enhance energy efficiency and reduce carbon emissions. As the carbon price rises to the level required for carbon neutrality, CPS decreases significantly, particularly in the residential and commercial sectors. Therefore, it is necessary to introduce a carbon tax in the country to reach the required carbon price level for carbon neutrality, with a priority on introducing it in the residential and commercial sectors.

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

• Environmental and Resource Economics Review
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• v.9 no.1
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• pp.209-228
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• 1999

탄소세는 기후변화 방지를 위한 구체적 수단으로 교토의정서에서 채택된 시장원리 중심의 유연성체계 장치와의 결합선상에서 주목을 받고 있다. 국제경쟁력 감소 총탄소배출량증가 등 잠재적 부작용에도 불구하고, 탄소세는 기후변화협약에 따른 의무감축 수행을 위한 비용 효과적인 방안으로 인식되고 있다. 선진국을 중심으로 볼 때, 지금까지 탄소세는 덴마크, 핀랜드, 네덜란드, 노르웨이, 스웨덴 등 북유럽 5개국이 부분적으로 실시하고 있으나 갖가지 예외조항의 실시로 인해 본래의 의미인 환경보호는 소홀히 취급되고 경쟁력 약화 우려가 정책결정의 주요한 변수로 작용하고 있다.

• 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.