• Environmental and Resource Economics Review
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• v.18 no.4
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• pp.587-635
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• 2009

The purpose of this study is to develop the Global Dynamic Computable General Equilibrium Model (Global CGE Model) in order to produce an economic impact analysis, including prospective obligations for the Post-2012 regime. This model explores the impact of an international emissions trading market and macroeconomic variables such as GNP, consumption, investment, imports and exports, in accordance with potential increased obligations on the Republic of Korea. Distinguishing it from existing studies, this Global CGE Model divides the global community into major economic groups, and in the capacity of the analyzed global model, reflecting the principle nations' macroeconomic indicators through the theoretical approach of endogenous growth theory. Policies such as an emissions trading scheme and carbon tax are reflected in the model. Also, in particular, the model reflects exogenous technological advances. According to this analysis, the stronger the greenhouse gas reductions, the greater the adverse effects on the economy; among macroeconomic indicators that appear, a significant decline is realized in the balance of trade, along with a significant decrease in investment and consumption. Energy dependence, in particular, plays a large role-varying in degree by industry type-, as greenhouse gas reductions would have a greater impact on energy-intensive industries. Furthermore, if Korea, currently recognized as a developing country, is given the obligation to reduce greenhouse gas emissions, competing countries such as China and other developing countries will be given an advantage.

• Environmental and Resource Economics Review
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• v.28 no.2
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• pp.307-326
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• 2019

The electric vehicle is a representative measure to reduce greenhouse gas and local air pollutants in the transportation sector. Most countries provide purchase subsidies and tax reductions to promote electric vehicle sales. The electric vehicles have been considered as zero-emission vehicles(ZEV) in light of the fact that there has been no pollutant emission during driving. However, recent studies have pointed out that the pollutant emitted from the process of generating electricity used for charging the electric vehicles need to be treated as emissions of the electric vehicles. Furthermore, the environmental benefits of electric vehicle replacing the internal combustion vehicle vary with the power mix. In line with the recent studies, this study analyzes the impact of electric vehicles based on the current power mix and future energy transition scenarios in Korea. To estimate the precise air pollutants emission profile, this study uses hourly electricity generation and TMS emission data for each power plant from 2015 to 2016. The estimation results show that the electric vehicles under the current power mix generate the environmental benefits of only -0.41~10.83 won/km. Also, we find that the environmental benefit of electric vehicle will significantly increase only when the ratio of the coal-fired power plant is reduced to a considerable extent.

• Environmental and Resource Economics Review
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• v.31 no.3
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• pp.419-449
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• 2022

This paper aims to quantify the potential economic burdens of EU's carbon border adjustment mechanisms faced by Korean domestic industries. In addition, this study tries to compare and analyzes changes in the burden of each industry resulted from the implementation of the domestic low-carbon policy. Based on the quantitative findings, we intend to suggest policy implications for establishing mid- to long-term strategies in response to climate change risks. Based on the environmentally extended input-output analysis, the total economic burdens of the domestic industries due to the EU's carbon border adjustment mechanisms are estimated to be approximately KRW 8,245.6 billion in 2030. Looking at the impacts by industry, it is found that major industries such as petrochemicals, petroleum refining, transportation equipment, steel, automobiles, and electric/electronic equipment industries are expected to account for 84.3% of the total potential burdens. In addition, in multiple policy scenarios assuming technological developments and energy transition following the implementation of domestic low-carbon policies, the total economic burden of carbon border adjustment is expected to decrease by about 11.7% to 15.0%. The main result of this study suggests that we should not view EU EU's carbon border adjustment mechanism as a trade regulation, but to use it as a momentum for more effective implementation of the low-carbon and energy transition strategies in the global carbon neural era.

• Journal of Korea Trade
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• v.26 no.8
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• pp.21-36
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• 2022

Purpose - Carbon emission standards are based on the "production-based carbon emissions" generated by the production of goods in the relevant country which were the existing measurement methods. However, can such carbon emissions measurement standards be established international? For example, some of the goods produced in developing countries are produced for the demand of developed countries. The method of measuring carbon emission based on the final demand of a certain country is called "consumption-based carbon emissions." This study compares productionand consumption-based CO₂ emissions according to economic growth in ninety-three countries categorized by income level. Design/methodology - Our empirical model considers the difference between production- and consumption-based CO₂ emissions according to economic growth. Also, our model investigated whether the EKC hypothesis in most of the previous studies that had been based on production-based emissions was also established in the consumption-based emission model. Considering the continuous characteristics of CO₂, we utilized the generalized method of moments (GMM), specifically a system GMM econometric technique because CO₂ in the previous period can affect CO₂ in the present period. Findings - Our main findings can be summarized as follows: The results show that for the consumption-based CO₂ emissions model, CO₂ continuously increases as economic growth increases in the upper-middle income countries. The inverted U-shaped result was found in the case of the production-based model. However, in the lower-income countries, an inverted-U shape in which CO₂ emissions decrease at some point as the economy grows in the production-based model does not appear. On the other hand, in the consumption-based model, an inverted U-shaped result was obtained when estimating with system-GMM. Additionally, the proportion of manufacturing, energy imports, and energy consumption had an effect on both the production- and the consumption-based model regardless of the group's CO₂ emissions. On the basis of such assessments, policymakers need to consider not only production- but also consumption-based options. Originality/value - Previous studies have mainly focused on production-based CO₂ emissions, with most of them revolving around economic growth or the effect of various social and economic factors on CO₂ emissions. However, this study considers the relationship with economic growth using consumption-based emissions as a dependent variable by classifying ninety-three countries by income level.

• Journal of Distribution Science
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• v.10 no.7
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• pp.33-41
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• 2012

The purpose of this study is to analyse the state of the energy industry and to determine the efficiency of its functioning on the basis of energy conservation principle and application of innovative technologies aimed at improving the ecological modernisation of agricultural sectors of Kazakhstan. The research methodology is based on an integrated approach of financial and economic evaluation of the effectiveness of the investment project, based on calculation of elasticity, total costs and profitability, as well as on comparative, graphical and system analysis. The current stage is characterised by widely spread restructuring processes of electric power industry in many countries through introduction of new technical installations of energy facilities and increased government regulation in order to enhance the competitive advantage of electricity market. Electric power industry features a considerable value of creating areas. For example, by providing scientific and technical progress, it crucially affects not only the development but also the territorial organisation of productive forces, first of all the industry. In modern life, more than 90% of electricity and heat is obtained by Kazakhstan's economy by consuming non-renewable energy resources: different types of coal, oil shale, oil, natural gas and peat. Therefore, it is significant to ensure energy security, as the country faces a rapid fall back to mono-gas structure of fuel and energy balance. However, energy resources in Kazakhstan are spread very unevenly. Its main supplies are concentrated in northern and central parts of the republic, and the majority of consumers of electrical power live in the southern and western areas of the country. However, energy plays an important role in the economy of industrial production and to a large extent determines the level of competitive advantage, which is a promising condition for implementation of energy-saving and environmentally friendly technologies. In these circumstances, issues of modernisation and reforms of this sector in Kazakhstan gain more and more importance, which can be seen in the example of economically sustainable solutions of a large local monopoly company, significant savings in capital investment and efficiency of implementation of an investment project. A major disadvantage of development of electricity distribution companies is the prevalence of very high moral and physical amortisation of equipment, reaching almost 70-80%, which significantly increases the operating costs. For example, while an investment of 12 billion tenge was planned in 2009 in this branch, in 2012 it is planned to invest more than 17 billion. Obviously, despite the absolute increase, the rate of investment is still quite low, as the total demand in this area is at least more than 250 billion tenge. In addition, industrial infrastructure, including the objects of Kazakhstan electric power industry, have a tangible adverse impact on the environment. Thus, since there is a large number of various power projects that are sources of electromagnetic radiation, the environment is deteriorated. Hence, there is a need to optimise the efficiency of the organisation and management of production activities of energy companies, to create and implement new technologies, to ensure safe production and provide solutions to various environmental aspects. These are key strategic factors to ensure success of the modern energy sector of Kazakhstan. The contribution of authors in developing the scope of this subject is explained by the fact that there was not enough research in the energy sector, especially in the view of ecological modernisation. This work differs from similar works in Kazakhstan in the way that the proposed method of investment project calculation takes into account the time factor, which compares the current and future value of profit from the implementation of innovative equipment that helps to bring it to actual practise. The feasibility of writing this article lies in the need of forming a public policy in the industrial sector, including optimising the structure of energy disbursing rate, which complies with the terms of future modernised development of the domestic energy sector.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.643-665
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• 2014

We study the optimal policy of the contracual arrangement in raising the debt-to-equity ratio for oil, gas and mining project finance deals. We investigate the impact of the optimal contractual relationship between counterparties on the soundness of projects, differing in output price volatility and country risk. Key findings are: first, the existence of EPC sponsors and off-takers generally raises the debt-to-equity ratio. In particular, EPC sponsors and off-taking sponsors jointly mitigate the credit risk caused by counntry risk. Seocond, off-taking and EPC contracts jointly help mitigate the credit risk caused by the country risk, rather than the price volatility. Indeed, the contractual structure raises the debt-to-equity ratio.

• Environmental and Resource Economics Review
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• v.23 no.3
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• pp.515-551
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• 2014

Recently, there has been a debate as to whether bioethanol should replace some portion of gasoline for fuels in South Korea, as energy security as well as climate change issues are rising as a significant national agenda. However, a considerable amount of subsidy will be required to compensate for the higher price of bioethanol-blended gasoline. In this context, government subsidy will obtain justification only when the positive social gains from consuming bioethanol for fuels can exceed the negative social costs. Through a nation-wide choice experimental survey, we examine if South Koreans have a positive value as well as non-linear preferences on substituting bioethanol for gasoline. The results reveal that the willingness to pay for purely domestic bioethanol-blended gasoline within 10% is about 52 KRW; Koreans have concave preferences on the blending ratio of bioethanol to gasoline. The turning point of the blending ratio of bioethanol was 6.5%. Also, we found inverse U-shaped curve between income and bioethanol choice probability and the turning point of the income was calculated as 250~299million KRW. Politically conservative propensity advocates uses of bioethanol blended gasoline, but awareness on bioethanol or more weights on environmental conservation have significantly negative effects on the choice of bioethanol. However, the design of the survey questionnaire is incompatible with the RFS of Korea and assumes orthogonality among the following four interrelated attributes: (i) domestic or offshore procurement of feedstocks in the case of domestic production, (ii) domestic production or import of bioethanol, (iii) the blending ratios, and (iv) the retail price increases. In addition, the results of model estimation and of model selection test are not definite. Hence, the results in this study should not be directly applied to the design of the specifics of the Korean RFS. Hence, the results in this study require cautions in applying to the design of the Korean RFS policy.

• Environmental and Resource Economics Review
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• v.25 no.3
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• pp.449-470
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• 2016

This paper analyzes the effects of nuclear power generation on industrial growth in using the data of 22 manufacturing sectors in 14 nuclear power countries. The hypothesis that the change in the proportion of nuclear power generation in total electricity generation affects industrial value-added and industrial output through industrial electricity price reduction was tested using the dynamic panel data model. First, it was estimated that the increase in nuclear power generation by a 1% leads to a 0.8% reduction in electricity price. The results indicate that when nuclear power generation increased by a 1% point, industrial value-added and output increased by 0.16% and 0.23%,respectively, in the short-run and by 0.51% and 0.85%, respectively, in the long-run. It was also inferred that the effect of nuclear generation on industrial competitiveness working through electricity price reduction rely on institutional settings in the electricity markets. That is, the competitive effect is greater in the countries such as U.K and Japan where electricity price is high and price volatility is large. Meanwhile, in Germany which has pursued phasing out nuclear power, industrial competitiveness is promoted through stable electricity supply.

• Journal of Korean Home Economics Education Association
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• v.17 no.4 s.38
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• pp.1-26
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• 2005

The Purpose of this study was to investigate the eating habits, nutrition and dietary fiber intakes of middle school students from urban areas, Jinju city and rural areas, Hadong and Namhae Gun in Gyeongnam province. Data were collected by using a survey questionnaire. The result of this study are as follows: In the respects of eating habits, the eating habits of girl students ware worse than those of boy students Regardless of region and subjects, the intakes of energy, calcium, iron, riboflavin, dietary fiber were poor. In all the regions the intakes of dietary fiber was far less than $20\~25g$ of daily intakes level. Mental education should also be emphasized to form teenagers' self-identity and the sense of value. Also, the nutritionists of each school should try to focus on the composition of group meals containing fish, vegetables, Kimchi and boiled rice and cereals, not satisfying with the group meals centered on hygiene. Health and nutrition depends on the food people take, teenagers' health is the basis of their future health. The continuous study about teenagers' eating habits and dietary fiber needs to be emphasized.

• Environmental and Resource Economics Review
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• v.17 no.1
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• pp.165-196
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• 2008

This paper reports a quantitative meta analysis of the economic impacts of localized noxious and contaminated sites. Using either hedonic property value or stated preference methods, economists have studied the effects of contamination or noxious activities, or the benefits realized from their elimination, on real estate prices at more than 40 sites. In support of wise public and private investments in environmental quality, most of these studies aim to inform decision makers about the benefits of remediation and cleanup. Their results vary considerably, but there has been no previous systematic effort to analyze the differences and identify shared insights. This study uses established methods of meta analysis to identify points of agreement and differences in this body of literature. The studies are characterized by the type of site, modeling approach, geographic extent of impacts, data features, and other key factors that underlie their value estimates. The impact estimates are normalized as proportional effects on property values. This study attempts to discover whether the estimated economic impacts of contamination or noxious activity differ according to these characteristics of the studies, and whether anything general can be said about the economic consequences of site contamination and remediation. Bivariate, multivariate, and logit techniques are applied to the data. The results suggest that the property value is the most sensitive to water base contamination, published case studies result in systematically greater environmental value than those in unpublished reports, and real estate markets show responses to environmental condition changes.