• Journal of Energy Engineering
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• v.22 no.4
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• pp.376-385
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• 2013

There are conflicts about energy price increase among government, producer, and consumer. The supplier insists on price increase for escaping running a deficit and business continuity, but the consumer concerns about worsening profitability and price rise. This study investigates the effects of energy rate increase on national economy using input-ouput(I-O) analysis. This study attempts to analyze the effects of national economy due to Coke and hard-coal, Naphtha, Gasoline, Kerosene, Light oil, Heavy oil, Liquefied petroleum gas, Electric utilities, Manufactured gas supply and Steam and hot water supply (using input-output table for the year 2011, Korea.) The results of the sectoral price changes due to a 10% increase in energy price that is obtained from the Leontief price model are presented in article. The result of this analysis is presented: The impact of the 10% increase in electricity rate on the general price level is estimated to be 0.2196%. In case of Kerosene, the impact is 0.1222%. It shows that Electric utilities are approximately 18 times larger price inducing effect as Kerosene. Also, this study indicates 3 years results sequentially to make it possible to observe trend. Then, study suggests balancing price by making each energy source adjusted.

• Journal of the military operations research society of Korea
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• v.35 no.2
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• pp.99-117
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• 2009

Energy is essential factor of production for a firm to produce goods and services. If so, what is the condition of maintaining profit of a firm when energy price is going up? In conclusion, the condition is that the rate of productivity improvement should be greater than the rate of energy price increase. To put this concretely, when the elasticity of energy price as to the productivity improvement is greater than the weight of the energy cost on to the total revenue of the firm, the firm can escape the negative effect of energy price increase. This is that, saying that once more, the firm have to reduce the energy cost or promote energy efficiency to maintain appropriate or sufficient profit when energy price is going up fast. Therefore, in this study we will analyze the effect of the oil price increase on the energy saving investment and that of energy saving investment on the energy efficiency in the field of Korean manufacturing industry. In doing so, this study could show that the effect of energy price increase on the energy efficiency of the firm and the factor of that mechanism.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.57 no.4
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• pp.576-581
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• 2008

Electricity Market in Korea can't provide locational price signal through energy price because energy market is CBP(Cost Based Pool) using uniform price. Generators don't want to locate in a densely populated load area(like the metropolitan area). Because they are paid more fixed cost in metropolitan area. This situation has loss and congestion occurred in power system. However energy market without price signal can't lead generator to the metropolitan. So, market participants should be provided price signal through the transmission price instead of energy price. This paper proposes transmission pricing method considering reliability cost in order to offer price signal. Also, it proposes the method to allocate the transmission cost to each transmission line user through a fair and a reasonable manner. The transmission price is decided by the reliability value of each line. If a transmission line of high reliability value is broke, users using that line will get a loss and a discomfort. So, it is fair that users using a transmission line of high reliability value pay more than the other users. Also, it is reasonable that a transmission line owner get paid more form users using that line.

• Environmental and Resource Economics Review
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• v.10 no.4
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• pp.495-513
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• 2001

We investigate a practical method of calculating the impact of multiple domestic energy price change on the final demand, production, the export and import change, the change in the balance of payment of Korean economy. By combining an existing computable general equilibrium (CGE) model with the traditional input-output analysis with two additional assumptions on the price behavior, we provide a cost-effective method of analyzing the impact of multiple energy price changes on the domestic economy. The energy price shock we used in this paper is 0.127% increase weighted by the sectoral productions. The total impacts on price level and GDP are 1.258% and -0.940%, respectively. The impact on the total output (GDP and intermediate goods) is about -1.580%.

• Environmental and Resource Economics Review
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• v.29 no.2
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• pp.195-217
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• 2020

The improvement of energy intensity is drawing attention as a way to achieve sustainable development. Energy price and technology level are the main factors affecting energy intensity, and empirical studies on the relationship between the variables have been conducted mainly in overseas countries. However, analyzing the relation between energy intensity, energy price and technology has not been studied in Korea. Therefore, this study analyzed the dynamic relationship between energy intensity, energy price, and total factor productivity (TFP) in Korea. As a result of the analysis, the three variables form a long-term equilibrium relationship. The increase in TFP reduces energy intensity in both short and long term, and the long-term effect is greater than short-term effect. On the other hand, energy price do not have a significant impact on energy intensity. Granger causality test results show that energy intensity and TFP granger cause each other, but energy price is weak-exogenous.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.28 no.7
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• pp.97-105
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• 2014

This article examines the causality relationship among SMP, base-load share, LNG import price, and exchange rate in Korean power market during 2002~2012, using unit root test, cointegration test, and vector error correction model(VECM). The cointegration test shows that 4 variables without unit root have been in the long-run causality. As the results of ECM, SMP is analyzed to have been unilaterally caused from LNG import price and base-load share in the shot-run, while it has been unilaterally caused from LNG import price and exchange rate in the long-run. This article has the following policy implications: the adjustment of exchange rate to reduce he risk of LNG import price and the proper securement of base-load share for the long-run stability of SMP.

• Journal of Energy Engineering
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• v.21 no.3
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• pp.301-308
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• 2012

This paper attempts to estimate the demand function for the transport LPG and to analyze long-run and short-run price and income elasticities. In addition, the paper measures consumer surplus and economic value ensuing from the transport LPG consumption by utilizing the estimated long-run price elasticity. The price and the income data are the monthly real transport LPG price and the monthly composite index adjusted by real transport LPG price from 2003 to 2012. Unit root test, co-integration test and error correction model are to take the procedure of estimation of demand curve. The demand for transport LPG is considered to be inelastic and the long-run demand is more elasticity than that of short-run. Price elasticity of demand estimate here is -0.422, and the estimated consumer surplus and economic value in 2010/03 are 966 and 1,781 billion won, respectively.

• New & Renewable Energy
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• v.8 no.4
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• pp.21-29
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• 2012

The extensible supply of New & Renewable energy resources desperately needs to counter the high dependence on imported energy, recent high oil prices and the Climate Change Conference, and the government has operated the 'Renewable Portfolio Standard' (RPS) as one of the renewable energy policy from 2012. By analyzing the operation case of combined heat and power plant using the woodchip biomass, we drew the price of wood chip fuel, plant capacity factor, electricity selling price, heat selling price and LCOE value. After analyzing the economic feasibility of 3MWe combined heat and power plant based on the operating performance, the minimum of economic feasibility has appeared to be secured according to the internal rate of return (IRR) is 6.34% and the net present value (NPV) is 3.6 billion won as of 20 years life time after installation, and after analyzing the cases of the economic feasibility of the price of wood chip, plant capacity factor, electricity and heat selling price are changed, the economic feasibility is valuable when the price of wood chip is over 64,000 won/ton, NPV is minus, and the capacity factor is above 46.9%, the electricity selling price is 116 won/kWh and the heat selling price is above 75,600 won/Gcal. When going over the new installation hereafter, we need the detailed review of the woodchip storage and woodchip feeding system rather than the steam-turbine and boiler which have been inspected many times, the reason why is it's hard to secure the suitable quality (constant size) of woodchip by the lack of understanding about it as a fuel because of the domestic poor condition and the calorific value of woodchip is seriously volatile compared with other fuels.

• Journal of the Korean Society for Geothermal and Hydrothermal Energy
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• v.8 no.4
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• pp.1-7
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• 2012

In this study, computer simulation for demand control strategies to save the electric energy and power price in the building central cooling system is done. The demand control and outdoor reset control algorithms are applied by consideration the electric energy and power price according to the energy consumption characteristics. The suggested control methods show better responses in the power price and energy consumption in comparison with the conventional one.

• Environmental and Resource Economics Review
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• v.9 no.5
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• pp.925-945
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• 2000

This paper analyses the impact of energy-saving investment on Greenhouse gas emissions using a model of energy demand in Korea. SUR method was employed to estimate the demand equation. The econometric estimates provide information about the energy price divisia index, sector income, and energy saving-investment elasticities of energy demand. Except for energy price divisia, the elasticities of each variable are statistically significant. Also, the price and substitution elasticities of each energy price are similar to the results reported by the previous studies. The energy-saving investment is statistically significant and elasticities of each sector is inelastic. Using the coefficient of energy-saving investment and carbon transmission coefficient, the amount of reduction of energy demand and the reduction of carbon emissions can be estimated. The simulation is performed with the scenario that the energy-saving investment increase by 10~50%, keeping up with Equipment Investment Plan of 30% increase in energy-saving investment by 2000. The results show that the reduction of energy demand measured as 11.2% based upon 1995's level of the energy demand, in industrial sector. Accordingly, the carbon emissions will be reduced by 11.3% based upon 1995's level of the carbon emissions in industrial sector.