• Journal of Korean Society of Transportation
• /
• v.32 no.1
• /
• pp.13-26
• /
• 2014

Depending most of its energy sources on foreign countries, Korea efforts to reduce energy consumption in transportation. While studies on the relationship between gas price and transportation demand are many in number, most previous studies have focused on automobile and Seoul. This study analyzes the impact of gas price on transit (bus and subway) demand using monthly data and for various metropolitan areas (Seoul, Busan, Daejeon, Daegu and Gwangju). The research utilizes a time-series model and a multiple regression model, and calculates modal demand elasticities of gas price. The result shows that elasticities of subway demand with respect to gas price is higher than those of bus demand. In addition, elasticities of predominantly automobile cities are more likely to be more sensitive to gas price than those of cities with well-structured transit system.

• Environmental and Resource Economics Review
• /
• v.31 no.2
• /
• pp.141-163
• /
• 2022

This paper empirically analyzes the effect of renewable electricity generation on the System Marginal Price (SMP) in Korea. Using an ARX-GARCHX model with hourly data from 2016 to 2020, we evaluate SMP determinants and merit order effects. As a result, we find that solar and wind power, as well as gas price and total load, play a critical role in the SMP. In particular, solar power reduces the SMP level but raises volatility during peak and off-peak periods. This result implies that SMP may fall as renewable electricity generation increases, leading to a decrease in the profitability of existing power plants and investment in renewables. On the other hand, even if the subsidy of renewable energy increases the burden on the SMP, it can be offset by the merit order effect, which lowers the SMP.

• Environmental and Resource Economics Review
• /
• v.21 no.3
• /
• pp.441-464
• /
• 2012

As prices of energy resources such as oil and gas started to rise steadily in 2000, energy security has been one of the most important topics in the world. To secure more energy, most of countries which are highly dependent on imported energy resources try to occupy oversea oil or gas reserves, thereby intensifying competition for energy resources around world. Under this circumstance, we focus on independent E&P companies since they are relatively small size companies which are suitable for M&A. We analyze investment option values for these E&P companies using a real option model for depletable resources. Based on analytical model, empirical study is provided to examine rationality of investment for energy companies. The result shows sufficient profitability for independent E&P companies in both oil and gas projects in the North America during 2004 to 2008. In Particular, oil projects were more feasible than gas project due to lower price of gas and high volatility of gas price at that time.

• The Journal of Society for e-Business Studies
• /
• v.17 no.2
• /
• pp.105-114
• /
• 2012

Recently, global warming, energy shortage, and environmental disruption have been serious problems in every nation. It became more and more important to reduce the emission of CO2 and to use of energy efficiently. Smart grid was also introduced using the rapidly developing information technology. It deployed the mutual communication concept between customers and the suppliers in the electricity supply. There were increasing demands to adopt the smart meter and to present incentive for efficient energy usage in many developed countries. The objective of this research was to develop the optimal real time pricing model which maximized the profit of the power retailer and reduced the usage of energy. The simulation study was given to show the usefulness of the model. Simulation considered the customer demand response rate and price elasticity rate. The price elasticity rate was compared in the condition of fixed value according to time and variable value according to the customers. The optimal price model could maximize the profit of the power retailer and reduce the energy usage of the consumers.

• Journal of the Korean Solar Energy Society
• /
• v.37 no.1
• /
• pp.59-69
• /
• 2017

In 2012, Korea introduced a Renewable Portfolio Standard (RPS) scheme, replacing the Feed-in Tariff (FIT) scheme as a market support policy of renewable energy in the electricity market. RPS is to allocate obligatory quota of renewable energy sources for electricity suppliers, whereas FIT is to guarantee high prices for electricity from renewable energy sources. This study examines the effect of this policy change on solar photovoltaic market. According to the study, solar PV market grew fast under FIT as well as under RPS. However, under RPS the size of subsidy for solar PV suppliers was shrunk substantially. In addition, market risk increased severly under RPS due to the volatility of price of renewable energy certificate (REC) as well as of the electricity market price. The small and medium suppliers of solar PV were suffered the most severly from these policy effects. Therefore, the policy reform of RPS is needed to alleviate the market risk of small and medium suppliers of solar PV.

• Journal of Biosystems Engineering
• /
• v.24 no.4
• /
• pp.351-358
• /
• 1999

In these days, we are faced to a couple of difficult problems, the one is the unstable price of the energy due to the shortage of fossil fuel resources and the other is the serious environmental pollution from the excessive consumption of fossil fuel. In order to save the thermal energy for the house heating, in this study the heat pump using the natural thermal energy resources was provided for Ondol heating and the thermal energy consumption of the heat was compared to that of oil boiler. The results could be summarized as follows: 1. In the Ondol room the temperature difference between the Ondol surface and room air was about 5∼$10^{\circ}C$ in accordance with the ambient temperature. 2. The Ondol room heating efficiency of the heat pump with compressor of 2PS was the highest at the water flow rate of 200 l/h. 3. The energy saving rate of the heat pump to the oil boiler for heating the Ondol system was 19.3%. 4. The Ondol heating cost of the heat pump was less 20.6% than that of oil boiler when oil price was 478 won/l.

• Journal of Electrical Engineering and Technology
• /
• v.13 no.1
• /
• pp.51-59
• /
• 2018

Despite the advantages of energy arbitrage using energy storage systems (ESSs), the high cost of ESSs has not attracted storage owners for the arbitrage. However, as the costs of ESS have decreased and the price volatility of the electricity market has increased, many studies have been conducted on energy arbitrage using ESSs. In this study, the existing two-period model is modified in consideration of the ESS cost and risk-free contracts. Optimal investment strategies that maximize the sum of external effects caused by price changes and arbitrage profits are formulated by market participants. The optimal amounts of ESS investment for three types of investors in three different market structures are determined with game theory, and strategies in the form of the mixed-complementarity problem are solved by using the PATH solver of GAMS. Results show that when all market participants can participate in investment simultaneously, only customers invest in ESSs, which means that customers can obtain market power by operating their ESSs. Attracting other types of ESS investors, such as merchant storage owners and producers, to mitigate market power can be achieved by increasing risk-free contracts.

• Journal of Energy Engineering
• /
• v.15 no.3 s.47
• /
• pp.174-180
• /
• 2006

The trend and outlook of energy supply and demand have an crucial effect on not only energy sector but also korean economy due to the rapid change of energy environments with continuous high oil price such as dubai crude oil price of above $60 a barrel. Specifically, korea is the 9th largest energy consuming nation in the world and the 97 percentages of energy import totally depends on the import of energy resources in korea. Korean economy is influenced directly by the trend and outlook of world energy on account of that. Moreover, Should korea be the annex 1 country having responsibility for reducing its greenhouse gas emissions to 1990 levels by the year 2000, in 2013, The effectuation of united nations framework convention on climate change will affect korean economy severely. In this study, we analyze the supply and demand of primary energy resources such as petroleum, coal, and natural gas. we then suggest the optimal alternatives of energy technology development that play an important part, which will be a temporary bridge, in going forward with hydrogen economy in the aspects of energy policy.

• Journal of Energy Engineering
• /
• v.26 no.2
• /
• pp.80-92
• /
• 2017

This paper attempts to estimate the diesel fuel demand function in Korea using panel data panel data of 16 major cities or provinces which consist of diesel demands, diesel market prices and gross value added from the year 1998 to 2015. I apply panel GLS(generalized least square) model, fixed effect model, random effect model and dynamic panel model to estimating the parameters of the diesel fuel demand function. The results show that short-run price elasticities of the diesel fuel demand are estimated to be -0.2146(panel GLS), -0.2886(fixed effect), -0.2854(random effect), -0.1905(dynamic panel) respectively. And short-run income elasticities of the diesel fuel demand are estimated to be 0.7379(panel GLS), 0.4119(fixed effect), 0.7260(random effect), 0.4166(dynamic panel) respectively. The short-run price and income elasticities explain that demand for diesel fuel is price- and income-inelastic. The long-run price and income elasticities are estimated to be -0.4784, 1.0461 by dynamic panel model, which means that demand for diesel fuel is price-inelastic but income-elastic in the long run. In addition I apply dummy variable model to estimate the effect of 16 major cities or provinces on diesel demands. The results show that diesel demands is affected 10 regions on the basis of Seoul.

• Environmental and Resource Economics Review
• /
• v.21 no.3
• /
• pp.493-517
• /
• 2012

This paper analyzes a price discovery process for gasoline among branded and independent stations in Korea using a vector error correction model (VECM) and directed acyclic graphs (DAG). Two data sets for daily prices of medium level gasoline running from April 15, 2008 to May 31, 2009 and from January 1, 2011 to December 31, 2011 are used for empirical analysis. Empirical results show that S-OIL has an exogeneity and played a important role in the flow of price information in the market in the first period. In the second period, SK energy played a key role in price discovery process in the market. The price of NH-OIL stations do not cause the price of any other stations, which implies that the entrance of new branded stations with lower gasoline price to market has no influence on gasoline prices of retail markets.