• Korean Management Science Review
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• v.33 no.4
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• pp.17-31
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• 2016

Waste sector has been a target of abatement policies by the most governments, even though its greenhouse gas (GHG) emission is not so high, since it is related to almost of other sectors. This study propose new GHG calculation equations which resolves logical contradiction of IPCC GL (Intergovernmental Panel on Climate Change Guideline) equations by including waste-to-energy effects. According to two GHG calculation equations, GHG emission inventory and BAU by the year 2050 have been computed. And GHG abatement potential and marginal cost for the five abatement policies carefully selected from the previous researches have been calculated for the year 2020. The policy that makes solid fuel like RDF from flammable wastes and uses them as combustion fuel of electricity generations has been found to be the most efficient and effective one among five policies. The cumulative abatement amount when five policies not mutually exclusive are applied sequentially has been reckoned.

• Environmental and Resource Economics Review
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• v.10 no.4
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• pp.547-567
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• 2001

This paper analyzed what kind of institutional scheme for domestic policy instruments to reduce GHG emissions are desirable for Korea in complying with the international efforts to mitigate climate change, by focusing on independent abatement(equivalent to the imposition of carbon tax) and domestic emission trading. It also examined the economic and environmental implications of recycling the government revenue created from implementation of those policies. By utilizing a dynamic CGE model, this study shows that the economic cost under independent abatement is projected to be higher than that under emission trading. It is because under independent abatement scheme each emitter in economy must meet its emission target regardless of the abatement cost. On the other hand, emission trading allows emitters to reduce the marginal cost of abatement through trading of emission permits. In designing future domestic policies and measure to address the climate change problem in Korea, therefore, this study proposes the introduction of domestic emission trading scheme as the main domestic policy instrument for GHG emission abatement. In terms of double dividend, in addition, this study shows that both independent abatement and emission trading schemes under various assumption on the revenue recycling may not generate the double dividend in Korea.

• Journal of Korean Institute of Industrial Engineers
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• v.43 no.3
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• pp.203-212
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• 2017

Emissions Trading System (ETS) is utilized in many countries, including South Korea, as an efficient policy to abate GHG (Greenhouse Gas) emissions. Grandfathering on the basis of historic emissions is used as the way to allocate permits in South Korea. It, however, has caused an increase in the emission permits and lack of equity. To overcome these drawbacks, we propose an alternative DEA model for centralized allocation of emission abatement to evaluate the amount of emissions abatement by company based on the energy efficiency. In addition, an empirical analysis of 36 assigned companies for ETS in Korean metal industry is conducted to validate the feasibility of the proposed model. The result of the analysis shows that energy-efficient companies achieve reduced target of the emissions abatement and companies with low energy efficiency score are turned out to have contrary outcome, against the result of applying Grandfathering.

• Journal of Energy Engineering
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• v.23 no.4
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• pp.150-159
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• 2014

Since the release of mid-term domestic GHG goals until 2020, in 2009, some various GHG reduction policies have been proposed. There are two types of modeling approaches for identifying options required to meet greenhouse gas (GHG) abatement targets and assessing their economic impacts: top-down and bottom-up models. Examples of the bottom-up optimization models include MARKAL, MESSAGE, LEAP, and AIM, all of which are developed based on linear programming (LP) with a few differences in user interface and database utilization. In this paper, we suggest a simplified LP formulation and how can build it through step-by-step procedures.

• Journal of Energy Engineering
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• v.25 no.3
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• pp.114-129
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• 2016

Since the release of mid-term domestic GHG goals until 2020, in 2009, some various GHG reduction policies have been proposed to reduce the emission rate about 30% compared to BAU scenario. There are two types of modeling approaches for identifying options required to meet greenhouse gas (GHG) abatement targets and assessing their economic impacts: top-down and bottom-up models. Examples of the bottom-up optimization models include MARKAL, MESSAGE, LEAP, and AIM, all of which are developed based on linear programming (LP) with a few differences in user interface and database utilization. The bottom-up model for electric sector requires demand management, regeneration energy mix, fuel conversation, etc., thus it has a very complex aspect to estimate some various policies. In this paper, we suggest a bottom-up BAU model for electric sector and how we can build it through step-by-step procedures such that includes load region, hydro-dam and pumping storage.

• Journal of Korea Water Resources Association
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• v.45 no.12
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• pp.1201-1211
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• 2012

This paper constructed the single country sequential dynamic CGE model to analyze the economic impacts of subsidizing water industry under the GHG emission abatement policy in Korea. We introduced the carbon tax to reduce the GHG emission and made two scenarios. One is to transfer the total tax revenue to household. The other is to mix the tax transfer and water industry support. Our Simulation results show that the macroeconomic effects might be positive by subsidizing water industry compared with the pure tax transfer. However, the support of water industry doesn't contribute to head for the non-energy intensive economy because it's economic activity highly depend on fossil energy and energy intensive products as intermediate demand. This means that it is important to make efforts on the cost effective measures such as energy technology progress, alternative energy development, and energy efficiency improvement in water industry against climate change policy.

• Environmental and Resource Economics Review
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• v.14 no.2
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• pp.493-518
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• 2005

It has been taken for 10 years since Climate Change Convention could it be made. And Kyoto Protocol will come into force as an international law as from 16. Feb 2005. As based on it, Annex I countries will implement their mitigation projects on GHG reductions and press developing countries on GHG reduction target. Korea has not duty target on it yet. But it will be held a COP(Conference of Party) on negotiation for reduction target of second commitment period. If Korea has a real duty, Industry sector should reduce GHG emissions. Then Market mechanism will be need to introduce for this. This study started having a question "Is it possible to introduce emissions trading in Korea?". To solve the problem, this study analysed GHG emissions, marginal abatement cost, market price with 11 companies of industry (about 36% of Korea emissions). minus target is impossible to implement reduction target ver base year (2002). And emissions trading scheme also can't make the market without additional policy and measures. This study suggest that it is need to import credits and give a subsidy of government to encourage it. The imported credit can reduce the demand curve within the marginal abatement cost curves. But the effectiveness of credit is not the same as continually growth. As a result, Allowing 40% credit into emissions trading market is the best to reduce costs. However, a subsidy is the little bit difference. A subsidy make marginal abatement cost curves down for itself. Giving 30% for subsidy, it is the best. Considering both of importing credits and subsidy, it is the best effects in the reducing cost for company. especially 30% is the best effects respectively. This Study show that government wants to consider designing emissions trading, encourage participants competitiveness, and encourage the early action, government has to allow credit trading and give a subsidy to participants.

• Journal of Environmental Policy
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• v.5 no.1
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• pp.1-23
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• 2006

This study explores what potential future greenhouse gas allocation schemes might mean for OECD countries, and discusses a number of concepts of equity, examines three specific burden sharing rules and formulae. The results indicate that Korea reduces its emission from 8.1% and 19.8% which is 34.9-85.8 million tons of $CO_2$ emission on the assumption that the overall level of abatement remains 20% of total 2000 OECD emissions.