• International Journal of Highway Engineering
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• v.16 no.1
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• pp.75-89
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• 2014

PURPOSES : This study evaluates the economic value of national highway construction projects using Real Option Pricing Models. METHODS : We identified the option premium for uncertainties associated with flexibilities according to the future's change in national highway construction projects. In order to evaluate value of future's underlying asset, we calculated the volatility of the unit price per year for benefit estimation such as VOTS, VOCS, VICS, VOPCS and VONCS that the "Transportation Facility Investment Evaluation Guidelines" presented. RESULTS : We evaluated the option premium of underlying asset through a case study of the actual national highway construction projects using ROPM. And in order to predict the changes in the option value of the future's underlying asset, we evaluated the changes of option premium for future's uncertainties by the defer of the start of construction work, the contract of project scale, and the abandon of project during pre-land compensation stages that were occurred frequently in the highway construction projects. Finally we analyzed the sensitivity of the underlying asset using volatility, risk free rate and expiration date of option. CONCLUSIONS : We concluded that a highway construction project has economic value even though static NPV had a negative(-) value because of the sum of the existing static NPV and the option premium for the future's uncertainties associated with flexibilities.

• Journal of the Korean Society of Food Culture
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• v.7 no.1
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• pp.25-34
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• 1992

The purpose of this study was to investigate the value evaluation of foodstuff of 448 college students residing in the urban area. As a result of analyzing the value of each foodstuff, two to four factors were drawn from each foodstuff. The factors were classified into the social-conceptual factor, the preparatory factor, the quality factor, the economic factor, the subjective factor, and the complex factor. It was learned that the social-conceptual factor was dominant over the majority of college students in the evaluation of value of foodstuffs. There was a difference in the factor of the value evaluation for each foodstuff according to sex and the main growth region among the college students. A significant difference was found between the sexes regarding the preparatory factor and the economic factor. Also, in accordance with the main growth region, there was great difference in the social-conceptual factor(except for the Korean rice cake).

• Journal of the Korea Safety Management & Science
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• v.3 no.4
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• pp.135-144
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• 2001

The capital cost of the company is one that must be paid to the money owner as the price by using the money. The capital cost according to the source of money supply can be estimated by the expected profit rate undertaken by the use of the capital. But in the area of pre-existent economic evaluation, the evaluation of the company investment has been treated by the profit rate of the capital after considering the repayment conditions of the other's money or the interest. Thus in this study, in case the company makes an investment on various kinds of the capital at the same time, not make use of the capital as a one source, the economic evaluation of an investment should be handled by taking the weighted average cost of capital into consideration in proportion to the constitution of the capital cost by the sources of money supply, Especially, as the cost of the private money is very much connected with the profit rate through the stock market, the Capital Asset Pricing Model (CAPM) will be applied. This kind of economic evaluation method can be said to have much to do with the Economic Value Added : EVA) as well as to be highly thought as a standard to estimate the company' value recently To certify the usefulness of this approach, the case study of the output of the capital cost will be made for the purse of the economic evaluation of the alternative investment by using the financial statements of a motor company H.

• Journal of Nuclear Fuel Cycle and Waste Technology(JNFCWT)
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• v.16 no.4
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• pp.431-439
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• 2018

Less mature nuclear reactor technologies are characterized by a greater uncertainty due to insufficient detailed design information, operational data, cost information, etc., but the expected performance characteristics of less mature options are usually more attractive in comparison with more mature ones. The greater uncertainty is, the higher economic risks associated with the project realization will be. Within a comparative evaluation of less and more mature nuclear reactor technologies, it is necessary to apply economic risk measures to balance judgments regarding the economic performance of less and more mature options. Assessments of any risk metrics involve calculating different characteristics of probability distributions of associated economic performance indicators and applying the Monte-Carlo method. This paper considers the applicability of statistical risk measures for different economic performance indicators within a trial case study on a comparative evaluation of less and more mature unspecified LWRs. The presented case study demonstrates the main trends associated with the incorporation of economic risk metrics into a comparative evaluation of less and more mature nuclear reactor technologies.

• Korean Journal of Construction Engineering and Management
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• v.12 no.3
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• pp.91-100
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• 2011

Green technologies of buildings are spreading for saving resource and energy consumption during life cycle of buildings. However, selection of optimized the technologies for applying projects is needed a lot of time and costs. Therefore prioritization is necessary to apply the technologies for buildings. An evaluation of economic value for the technologies is significant for prioritization of the technologies, however, the current evaluation system of economic value for technologies is not reflected the accurate features of the technologies. Green technologies have the objectives for reducing the emission of CO2 and saving the cost during the whole lifecycle of buildings. Thus the evaluation of economic feasibility for green technologies is needed to include the economic value from improving the environment. This paper developed the economic evaluation method integrated with LCC and LCA to accurately analyze the economic value for green technologies. Moreover, this paper drew the priority of the technologies by conducting case studies with the integrated method and analyzing the results with AHP. The conclusion of case studies, Green technologies is worth more if to include the economic value from improving the environment. Then in analysis of priority, Green intelligent component technologies were rated the highest. The conclusion of the study is able to utilize the supporting tool for making decision to select the optimized technologies for the projects and precedence study for developing future research of prioritization for green technologies. The future study for improving the developed method will supplement the various evaluation factors and apply the detailed weight to analyze the priority of green technologies.

• IE interfaces
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• v.14 no.4
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• pp.421-428
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• 2001

The economic effects of informatization are differently occurred according to industry types. Thus an evaluation methodology which reflects the industry type characteristics of informatization is needed. In this paper, we develop and analyze the indices for evaluating economic effects through informatization according to industry types, such as manufacturing, construction, financial services and marketing services. The factors related to performance of enterprise informatization can be defined as cost factors, effect factors, risk factors and influence factors. Effect factors are defined as quantitative or qualitative performance of informatization and classified into operational effect factors and strategic effect factors. The influence factor is defined as characteristics of informatization for industry types, that is, value chain of business and business products or services. Economic effect indices are classified according to the activity of business value chain. Economic effects indices of this research can be expected to play a role of general and standardized factors for economic evaluation of industry informatization.

• Journal of Korean Society of Rural Planning
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• v.15 no.4
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• pp.43-50
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• 2009

The Ethnic Villages which are designated as a cultural property in Korea are important factors to recognize how the living environment was and to represent uniqueness should be preserved in Korea. For these reasons, this study investigates the Ethnic Villages in Korea and evaluates the economic values of the Ethnic Villages using CVM(contingent valuation method) which has been knows as one of the practical methods in the field of environmental economics. The results of this study indicate that the economic value of the Ethnic Villages for conservation and maintenance is 27,430 won per household/month, and this can be converted into 19,398 hundred million won per one year. This results proves validity of this study compared to the maintenance cost conserving the Ethnic Village of the Cultural Heritage Administration. It can be used as a policy basis to raise finances for conserving the Ethnic Village needed additional support.

• Journal of Korean Society of Rural Planning
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• v.20 no.4
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• pp.101-112
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• 2014

The public value of agriculture and rural areas is closely associated with the concept of multifunctionality of agriculture and rural areas, which in turn signifies economic values other than the production function of agriculture and rural areas. Based on the survey results, virtual scenarios were set up and the contingent valuation method (CVM) was used to estimate the amount consumers are willing to pay (WTP) for the public functions of agriculture and rural areas. This study selected five domains of the public value (environment conservation, maintenance of landscape and cultural tradition, enhancement of national prestige, local community maintenance and socio-economic functions, and food security) and 21 value items as components of the public value. An economic assessment of the public value of agriculture and rural areas was conducted using a binomial logistic regression model. The estimation results showed that the public value consumers are willing to pay ranges from a minimum of 6,346.8 billion won to a maximum of 9,327.2 billion won.

• The Journal of Fisheries Business Administration
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• v.43 no.2
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• pp.41-49
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• 2012

This study aimed to estimate the economic value of the recreational fishing in the Jeonnam marine ranching area as a part of the total socioeconomic evaluation of the Jeonnam marine ranching program. A travel cost method was applied to the estimation of economic value of the recreational fishing in the Jeonnam marine ranching area and input variables included annual fishing trip days, average travel cost per trip, average catch amount, monthly income, marriage, age, and personal perception on the marine ranching program. In the analysis, due to its characteristic of count data, both poisson model and negative binomial model were used. Model results indicated that a negative binomial model was statistically more suitable than the poisson model as the overdispersion problem occurred in the poisson model. All signs of the estimated parameters were estimated as previous studies showed. Based on the results, the economic value per trip of the recreational fishing in the Jeonnam marine ranching area was estimated to be 145,000 won and the annual total economic value of the recreational fishing in the Jeonnam marine ranching area was analyzed to be 2,514,000 won. In addition, the change of total value by catch rate showed that the economic value could be increased by 180,900 won as the catch increased by one kilogram.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.45 no.4
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• pp.31-41
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• 2022

As the environmental impacts of fossil fuel energy sources increase, the South Korean government has tried to change non-environmental-friendly enery sources to environmental-friendly energy sources in order to mitigate environmental effects, which lead to global warming and air pollution. With both a limited budget and limited time, it is essential to accurately evaluate the economic and environmental effects of renewable energy projects for the efficient and effective operation of renewable energy plants. Although the traditional economic evaluation methods are not ideal for evaluating the economic impacts of renewable energy projects, they can still be used for this purpose. Renewable energy projects involve many risks due to various uncertainties. For this reason, this study utilizes a real option method, the Geske compound model, to evaluate the renewable energy projects on Jeju Island in terms of economic and environmental values. This study has developed an economic evaluation model based on the Geske compound model to investigate the influences of flexibility and uncertainty factors on the evaluation process. This study further conducts a sensitivity analysis to examine how two uncertainty factors (namely, investment cost and wind energy production) influence the economic and environmental value of renewable energy projects.