• Journal of the Korean Society for Aviation and Aeronautics
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• v.27 no.1
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• pp.57-68
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• 2019

The emission trading system implemented in Korea is a system in which the government allocates or sells emission rights by setting the emission allowable amount to economic players subject to the emission trading system, allowing companies to freely trade shortfall or extra money through the emission trading market. Korea also had implemented its first emission trading system scheme period of time from 2015 to 2017. As a result of the first planning period in which total of seven Korean airlines were targeted, the emission amount was about 5.51 million KAU, while the quota amount was only about 4.85 million KAU, about 116% of the actual quota was emitted and Domestic airlines have incurred additional costs of about 10.7 billion won. Due to ICAO's implementation of CORSIA, the airlines are expected to have to shoulder additional costs because purchasing exceed quota will be increased in order to offset excess emissions not only on domestic but also on international routes. Thus, this paper had analyzed the characteristics of the carbon trading system of air transport industry and suggested a mix of regulatory policies as an improvement method.

• Journal of Environmental Policy
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• v.9 no.4
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• pp.77-102
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• 2010

The purpose of this paper is to analyze the Japanese emission trading system and climate change policy thereby contributing to the instituting of similar systems that will be viable for the Korean context. In applying such analyses, it is important to include a careful consideration of cost sharing between stakeholders and firms, an enhancement of the trust worthiness of data concerning greenhouse gases, and an examination of related infrastructure such as emissions authentication agencies and their development. Moreover, it is important to minimize the outflow of domestic resources such as offset credit, green electricity certification system, and ecopoint, making compatible economic growth and carbon reduction thereby encouraging the production and dissemination of 'Environmental Value' as well as connecting 'Environmental Value' to a emission trading system.

• KDI Journal of Economic Policy
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• v.34 no.2
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• pp.173-204
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• 2012

This study examines the equilibrium investment on the pollution abatement when firms are facing Cournot competition in the output market while the pollution permit market is perfectly competitive. Unlike standard perfect competition scenario, the abatement investment delivers an indirect effect in which it reduces other firms' equilibrium output. Consequently, compared with the socially optimal level, overinvestment arises. I also overview the potential inefficiencies that imperfect market structure induces under the emission trading scheme, presenting policy implications.

• Journal of Climate Change Research
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• v.9 no.3
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• pp.273-281
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• 2018

The purpose of this study is to consider the effectiveness of continuous $CO_2$ emission monitoring in waste incinerator. To prevent global warming, many countries are trying to reduce $CO_2$, the main greenhouse gas. Currently, Korea is implementing an emission trading scheme to reduce $CO_2$, and waste incinerators are included in this scheme as major $CO_2$ sources. However, when using waste incinerators, $CO_2$ is discharged during incineration of various types of wastes, therefore it is very difficult to calculate the amount of emissions according to IPCC guidelines. In addition, the estimation of $CO_2$ emissions by calculation is known to lack of accuracy comparing with actual emissions. Currently, Korea is operating CleanSYS, which enables continuous measurement of gases emitted into the atmosphere. Therefore, it is possible to estimate the $CO_2$ emissions of waste incineration facilities. The IPCC, which published $CO_2$ emission calculation guidelines, recognizes that direct measurement of emission is a more advanced method in cases of various $CO_2$ emission sources such as a waste incineration facility. Also, Korean emission trading scheme guidelines allow estimation of $CO_2$ emissions by continuous measurement at waste incineration facilities. Therefore, this study considers the effectiveness of a direct measurement method by comparing the results of CleanSYS with the calculation method suggested by the IPCC guidelines.

• Environmental and Resource Economics Review
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• v.32 no.3
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• pp.149-166
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• 2023

The emissions trading system, introduced to reduce greenhouse gas emissions, experienced a sharp increase in emission allowance prices during the second plan period (2018-2020), which led to an increase in the demand for smooth supply and demand of emission allowances, while suppliers anticipating a shortage of emission allowances in the future did not participate in trading. Therefore, the authority temporarily revised the guidelines to ensure that the amount of allowances carried forward is proportional to the trading volume as a market stabilization measure. Through an optimization process using a dynamic nonlinear mathematical model, this paper analyzes the impact of the government's intervention on the carryover policy on GHG emission reductions and emission allowance market prices. According to the simulation analysis results, banking regulations could cause a decline in prices during the regulation period, even though the initial policy was predicted to be adopted.

• Journal of Climate Change Research
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• v.7 no.1
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• pp.41-48
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• 2016

Korea has introduced Korea Emissions Trading Scheme (Korea ETS) since 2015. However, not many companies voluntarily participate in the emissions trading. The goal of this paper is to provide the way to improve the Korea ETS. This study compares the Korea ETS with EU Emissions Trading System, which has been practiced for a decade, and suggests three strategies to activate the Korea Emissions Trading Scheme. The first thing is to encourage more companies to participate in the emissions trading since the number of companies in the emissions trading in Korea is quite limited compared with that of EU. The second thing is to activate the trading of Korean Credit Unit in order to stimulate various emission reduction mechanisms. Currently, the most of the trading in the emissions market is through the Korean Allowance Unit. The third thing is to establish concrete measures to continuously improve the Korea ETS. A comprehensive evaluation of the Korea ETS is needed along with the ongoing convergence with the associated comments. The improvement of Korea ETS would be one of the most efficient ways to compete the climate change, and would also play a role to raise the status of Korea.

• Journal of Environmental Policy
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• v.8 no.4
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• pp.95-124
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• 2009

This study aims to introduce greenhouse gas emission trading in Korea as a highly cost-effective mechanism for controlling emissions. The Basic Act on Low-Carbon Green Growth will cover methods of emissions allocation, national inventory, and trading systems (i.e. emissions trading platforms, national registry,and clearing and settlement platforms). The Korean emission scheme will be based on the Korean Climate Change Act proposed by the National Assembly and Government with a cap-and-trade scheme. The national allowances will be allocated by the hybrid system. To establish the national inventory, TRADEMARKS (Telemetering System) and emissions factors are effective for greenhouse gas emissions measurement. It will likewise be effective for the national registry to be implemented via a Korean Integrated Registry, the emissions trading platform via the KRX (Korean Exchange), and the clearing and settlement platform via the KSD (Korean Securities Depository). In other words, the KRX will manage product development and marketing for Korean Carbon Financial Instruments (including commodities, futures, and options contracts) listed and admitted to trading on the KRX. All emissions trades will be standardized and cleared by the KSD.

• Journal of Climate Change Research
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• v.8 no.3
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• pp.221-230
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• 2017

There are two main policies to meet the national goal of reducing Greenhouse Gases (GHGs) emissions in Korea towards Paris Agreement. From 2012 to 2014, Target Management System (TMS) was operated and the Emissions Trading Scheme (ETS) has been established since 2015. To compare the impact of TMS and ETS on reducing GHGs, we collected annual GHGs emission reports submitted by individual business entities, and normalized them using a z-variant normalized function. In order to evaluate the impact of those policies, we calculated the amount of GHGs emissions of 73 business entities from 15 business sectors. Those entities emitted $508million\;CO_2eq$, which is 74% of total national GHGs emissions in 2014. The main results of analysis indicate that accumulated GHGs emissions during the period 2012 to 2014 affected by TMS was higher than the national goal of GHGs emission reduction, and only the GHGs emissions in 2014 were in the range of allowed GHGs emissions, set by the Government. In 2015, when ETS initiated, total GHGs emission trading was $4.84million\;tCO_2eq$, which is only 0.9% of total allowance in 2015. However, more than 50% of business entities, who got the allowance of GHGs emission given by the Government, met the goal of GHGs emissions. Particularly, 27 of 73 business entities reduced GHGs more under the ETS rather than the TMS. Even though we analyzed only 4 years' data to demonstrate the impact of TMS and ETS, it is expected to commit the national goal of GHGs reduction target by TMS and ETS.

• Journal of Korea Technical Association of The Pulp and Paper Industry
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• v.48 no.2
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• pp.75-82
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• 2016

The new climate regime for practical reduction in green house gas(GHG) emissions was launched in Paris at Dec. 2015. The Korea government would make various policies and plans in order to achieve the BAU 37 % emission reduction goals by 2030. In this study, the current situation and the possible corresponding methodology to the GHG emission reduction of Korea paper industry were investigated. Although the GHG emission reduction in KOREA paper industry has been successfully conducted compared with other industries until now, the more efforts for controlling GHG emission would be required to meet the new climate regime. The efficiency of various GHG reduction projects conducted by Korea paper companies was evaluated to find efficient way for GHG reduction. The certified methodologies of the external project based offset systems in Korea GHG emission trading scheme were also reviewed for providing the possible way to develope tailored methodology to the Korea paper industry.

• Environmental and Resource Economics Review
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• v.10 no.1
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• pp.65-93
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• 2001

This study provides allocation methods and transaction instances of introducing pilot projects of $SO_2$ emission trading that recently rises as an scheme for effective emission regulation to internalizing environmental externalities. The emissions caps that is the total endowment of $SO_2$ emission permits are calculated in each emission plant by considering methods for distributing those permits-by giving them away or by selling them at auction. The method adopted in this study has several defects in application of the reality. However, this study may have contributions to cognize the importance of, allowance trading among the participants and to firstly design the allocations of emission permits for each plant using real emission data.