• Title/Summary/Keyword: Incentive regulation

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The Effects of the change in Telecommunication Regulation on Incentive for Network Investment and Innovation - Based on Korean Telecommunications Regulation Changes-

  • Jung, Choong Young;Jung, Song Min
    • Asian Journal of Innovation and Policy
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    • v.1 no.2
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    • pp.148-167
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    • 2012
  • This paper analyzes the impact of the change in telecommunication regulation changes including the unification of telecommunication service on network investment. The unification of telecommunication service plays a role of separating behavior regulation from entrance regulation and reducing entrance constraints. Therefore, it is expected that the market spillover effect is high through the improvement of behavior regulation. In addition, the effects of the other regulation changes in the 2010 Telecommunications Business Act revision are analyzed. This paper discusses critical factors affecting the decision making process in respect to the firm level and analyzes the impact path guiding investment and innovation. The key findings are as follows. First, the impact of entrance deregulation depends on the intensity of deregulation. If the intensity is not high, this regulation increases the incentive on investment and innovation. However, if the intensity is high as shown in abolishing of licensing, it affects the incentive negatively. Second, if interconnection regulation focuses on existing facilities or the intensity is not strong, this light handed regulation might increase investment and innovation. However, if interconnection obligation is expanded to the facility not constructed or the facility applying new technology, this regulation might deteriorate investment. Third, price deregulation increases the competition of service but it also increases the business opportunity, which means positive effect on investment. Finally, the paper proposes the guideline for telecommunications policy.

An Incentive Regulation of Access Charges under Incomplete Information (불완전 정보하에서 접속료의 최적규제에 관한 연구)

  • Jung, Choong-Young
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.32 no.11B
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    • pp.700-708
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    • 2007
  • This paper considers an incentive regulation in the telecommunications industry with respect to the sale of retail and access services. This regulation scheme induces the monopoly carrier who owns bottleneck facilities to adopt socially optimal outcomes when providing access and retail services. It is well known that upstream carriers can realize an integrated level of profit, without integration, by means of a two-part tariff. First, this paper introduces a framework for regulating an access and retail price combined with budget balancing. Second, this paper introduces two-part tariff (price discrimination) scheme for both access (upstream) and retail (downstream) services and discusses the resulting implications for incentive regulation when the regulator has incomplete information about cost functions. By imposing a self-selection mechanism, the regulator can induce firms to adopt socially optimal prices in both access and retail markets.

Recommendations for Improving Incentive Systems in the Building Sector of South Korea

  • Han, Hyesim;Kim, Jonghun;Jeong, Hakgeun;Jang, Cheolyong
    • KIEAE Journal
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    • v.15 no.2
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    • pp.53-59
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    • 2015
  • Purpose: Reducing energy consumption and greenhouse gas emissions is a primary concern throughout the world, and the building sector is a particularly efficient area for making these reductions. In South Korea, the government has recently enacted policies for "Green Growth" that, among other things, enforce regulations in the building certification rating system (BCRS) and reorganize existing incentive systems. Method: In this study, we examined regulations and incentive systems used in the United Kingdom, Germany, and the United States that encourage the use of energy efficient technologies in construction and compared these policies to those used in South Korea. We also disseminated surveys to experts in the fields of architecture, planning and design, and engineering to better understand their knowledge and perception of the BCRS and its incentive systems. Additionally, we sought their recommendations for improving these incentive systems. Result: Based on our comparative case studies of regulations and incentives in other countries, alongside recommendations from experts in South Korea, we concluded that incentive systems in South Korea are limited and require improvement. We make recommendations for strengthening existing regulations and incentives and for implementing new incentive programs.

An optimal regulation for environmental pollution control in oligopoly (과점시장의 환경오염 규제를 위한 최적유인제도에 관한 연구)

  • 김재철;이상호
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 1993.10a
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    • pp.194-211
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    • 1993
  • This paper proposes an optimal incentive scheme for environmental pollution and output control in oligopoly markets under asymmetric information situation where the regulator has no information about each firm's technology on output productions and pollution abatements. We compare two interesting optimal incentive schemes (one is static model previously proposed and the other is dynamic model suggested in this paper), analyze features of these schemes, and carefully discuss its relevances to other schemes.

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The Plan of Improvement for the Law and Regulation on the Activation of Perpendicular Greening With Containers -With Apartment Simple planter- (화단형 입면녹화의 활성화를 위한 법적·제도적 개선방안 - 공동주택 간이화단을 중심으로 -)

  • Kim, Sun-Hae
    • KIEAE Journal
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    • v.4 no.2
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    • pp.41-47
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    • 2004
  • This study is to improve plan for the law and regulation systems on the perpendicular greening with containers to improve urban environment. The supports backed by laws and regulations are imperative for the activation of building greening. Although some local administrations in Korea try to lead perpendicular greening on building by means of Green Building certification system and so on, greening policies and managements are not pushed forward with consistency. Therefore building greening should be admitted to be a substitute green tract of land. The positive construction and management of greenzone should be accomplished as well. Devices, so to speak, which put greening under an obligation or authorize it as legal landscape area should be made rather than recommendations to make greenzone through current incentive systems. Positive perpendicular greening on building can be achieved by supplementing the law and regulation and incentive system about simplified planter. If planting and managing of simplified planter are continually entrusted to residents, even vertical landscapes will be affected by illegal diversion and negligence in result. Therefore, supports from governments and local administrations are needed.

Evaluating the Effectiveness of Employer-based Transportation Demand Management(TDM) Programs; A Case of Regulation XV in Southern California (기업체 교통수요관리 프로그램의 효과성 평가에 관한 연구 -미국 남가주 규제조치 15호 사례를 중심으로-)

  • 황기연
    • Journal of Korean Society of Transportation
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    • v.12 no.4
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    • pp.99-118
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    • 1994
  • This study is designed to evaluate the effectiveness of TDM as a peak-period trip reduction strategy. This effort uses as a case study, the implementation of Regulation XV (REGXV) in Southern California, the most ambitious and far reaching employer-based ridesharing program implemented to date. This study explores the program effectiveness in terms of three aspects ; employee travel behavior changes after implementating Regulation XV, TDM programs offered by employers subjects to Regulation XV, and causal relationship between employee travel behavior changes and employer-based TDM programs. The study finds that Regualtion XV has a small, but statistically significant positive impact on AVR change. Popular incentives used by employers are less costly and easy to implement rather than to be effective. The increase in AVR is associated with increases of carpools promoted by strong incentives such as monetary subsides. A large number of indirect incentive programs are not effective. The study concludes that employers need to invest heavily on strong incentives, rather than on proposing diverse incentives, to comply with REGXV.

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Improvement Directions of Interconnection Charge Regimes Between Networks (경영효율성을 고려한 접속료규제제도 개선방안)

  • 권수천
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.2 no.4
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    • pp.473-484
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    • 1998
  • The current interconnection charge regimes is based in fully distributed costing method. Basically this method doesn't give the incument carrier the incentive to promote efficient business operations. In this paper, 1 suggest the adoption of price cap regulation to interconnection charge as incentive schemes and review important considerations in its applications. Additionally I suggest the basic structure of the network costing model for applications of incremental costing method.

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The Relationship between Marketable Permit System and the Existing Atmospheric Regulations (배출권거래제와 기존 대기규제들과의 조화방안)

  • Cho, Seung Kuk;Kwak, Seung Jun
    • Environmental and Resource Economics Review
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    • v.9 no.4
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    • pp.597-619
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    • 2000
  • Marketable permit system (MPS) is a economic incentive instrument that allows polluters to achieve static and dynamic efficiency, However, Korea's atmospheric regulations are primarily based upon command and control (CAC) system and partly upon economic incentive instruments, which fail to realize its relative effectiveness, Accordingly, an introduction of MPS has been recommended with the cost effectiveness analysis in numerous studies, The literature, however, did not consider the relationship between MPS and the existing regulations, which is a key factor for the successful introduction of MPS, This paper provides a set of principles to judge how the existing regulations are reconciled with the introduction of MPS, In addition, authors execute an empirical study to show MPS's cost effectiveness when regulators apply MPS in Ulsan area for the abatement of sulfur dioxide, The results suggest that the regulations such as fuel regulation should be excluded when implementing MPS, and a flexibility in legal and regulatory system is to be required in order to secure a successful implementation of MPS.

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Deregulation and Rearrangement of the Government Role for the Railway Industry (철도산업육성을 위한 규제완화와 정부 정책에 관한 연구)

  • Lee, Wonhee;Kwon, Hyukjoon
    • Journal of the Korean Society for Railway
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    • v.17 no.6
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    • pp.452-456
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    • 2014
  • This article analyzes the new approach to regulation with regards to the railway industry and determines the government's new role. For this purpose, the regulations are categorized into three dimensions (economic, societal and administrative), following the criteria adopted by the Regulatory Reform Committee. Furthermore, these items are analyzed as compulsory vs. incentive, and prior vs. ex post, according to the managerial characteristics. As a result, some recommendations were derived: the economic regulations should be deregulated and the societal regulations should be modified in order to rationalize the criteria. From this perspective, the government's role needs to be repositioned in order to activate the railway industry.

Efficiency analysis in the presence of network effect with DEA method (네트워크 효과를 고려한 천연가스산업의 기술적 효율성 분석)

  • 이정동;오경준
    • Journal of Korea Technology Innovation Society
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    • v.3 no.3
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    • pp.36-52
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    • 2000
  • This study takes an issue of efficiency analysis in the presence of network effect utilizing the DEA (Data Envelopment Analysis) framework. Network effect has important policy implication for the regulation of local monopolies which undertake their business through physical network, such as electricity, natural gas, local telephony, etc. If the difference in spatial condition between companies is not controlled properly, the performance comparison and associated incentive regulation bear significant bias. In this study, we propose a methodology to measure the true managerial or technical efficiency apart from efficiency difference accruing from the difference in spatial condition. A series of modified DEA efficiency models are combined to investigate the extent of exogenous and endogenous efficiency component in the Korean natural gas distribution companies. Empirical results show that the network effect plays significant role in determining superficial performance difference.

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