• Journal of the Korean Solar Energy Society
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• v.33 no.5
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• pp.41-50
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• 2013

Economic feasibility study using weighted average variable Jeju System Marginal Price, SMP, was conducted for Gasiri wind farm of Jeju Island. To predict the variable Jeju SMP, generator share ratio for SMP was calculated from the real time wind power production and the power demand data for years. Also, sensitivity analysis on Net Present Value, NPV, and Benefit/Cost Ratio, B/C ratio, were performed to clarify which factors are more important in assessing economic feasibility. The result shows that the Gasiri wind farm has a minimum of 110 billion won and a maximum of 132 billion won difference between fixed and variable SMP. Also, Capacity Factor, C.F., had the highest sensitivity for NPV, followed by SMP. Accordingly, when economic analysis for a potential wind farm site is carried out, the variable SMP as well as C.F. should be considered for more accurate assessment of the wind farm.

• Proceedings of the KIEE Conference
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• 2007.07a
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• pp.574-575
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• 2007

This paper proposes a method for choosing the best transmission system expansion plan using nodal/bus delivery marginal rate criterion ($BMR_k$) defined newly in this paper. The objective method minimizes a total cost which is an investment budget for constructing new transmission lines subject to the $BMR_k$ which means a nodal deterministic reliability level requirement at specified load point. The proposed method models the transmission system expansion problem as an integer programming problem. It solves for the optimal strategy using a branch and bound method that utilizes a network flow approach and the maximum flow-minimum cut set theorem. Test results on an existing 21-bus system are included in the paper. It demonstrated the suitability of the proposed method for solving the transmission system expansion planning problem in competitive electricity market environment.

• Journal of the Korean Institute of Illuminating and Electrical Installation Engineers
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• v.22 no.6
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• pp.134-140
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• 2008

A switch in congestion management nile in an electricity market may have positive or negative impact on the surplus of a market participant. As a number of wholesale electricity markets around the world either have already adopted or plan to implement Locational Marginal Pricing (LMP) for energy and congestion management, it is necessary to study the economic impact of a change in congestion management in the Korean electricity market. However, the impact of congestion management on consumer costs and generator surplus has not been studied for the electricity market in Korea. This paper examines how a change in congestion management affects consumer costs and generator surplus in the Korean electricity market.

• Journal of Climate Change Research
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• v.4 no.3
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• pp.245-254
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• 2013

Korea government promote renewable energy as the core of their energy matrix to break the dependence and reduce greenhouse effects. This study analyzes the economic assessment of Solid Refuse Fuel project in urban area, considering the marginal external costs of air pollution in this area. Assessment index defined as costs (i.e., construction cost, operation cost) and benefit (margin, external cost) data which is located in Sudokwon landfill site. The result indicates that cost-benefit analysis of SRF is calculated as 1.0. In addition, SRF project is very sensitive about electric power selling price, operating cost and labor cost according to inflation rates. This study shows that the sustainability of SRF project is required the government financial support like investment funds as well as policy support. Variability analysis of SRF economic assessment due to renewable energy can be used for making policies in various fields such as waste and public energy field.

• Journal of the Korean Institute of Navigation
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• v.7 no.1
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• pp.1-32
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• 1983

The delay due to congestion has recently attracted widespread attention with the analysis of over-all operation at the port. But, the complexity of the situation is evident in view of the large number of factors which impinge on the considerable end. Queueing theory is applicable to a large scale transportation system which is associated with arrivals of vessels in a large port. The attempt of this paper is to make an extensive analysis of the port transport system and its economic implications from the viewpoint that port is one of the physical distribution facilities and a kind of queueing system which includes ships and cargoes as port customer. By analyzing the real data on the Port of Pusan, it is known that this port can be represented as a set of multi-channel with identical setof Poisson arrival and Erlang service time, and also it is confirmed that the following formula is suitable to calculate the mean delay in this port, namely, $W_4={\frac{\rho}{\lambda(1-\rho)} {\frac{e_N(\rho{\cdot}N)}{D_{N-1}(\rho{\cdot}N)}$ where, ${\lambda}$: mean arrival rate $\mu$: mean servicing rate; N: number of servicing channel; ${\rho}$: utillization rate (${\lambda}/N{\mu}$) $e_N$: the Poisson function Coming to grips with the essentials of the cost of delay due to congestion, a simple ship journey cost model is adopted and the operating profit sensitivity to variation in port time is examined, and for purpose of a future development for port princing service the marginal cost is approximately calculated on the basis of queueing theory.

• International Journal of Highway Engineering
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• v.18 no.3
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• pp.11-19
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• 2016

PURPOSES : This study supports the evidence that it is possible to rehabilitate a damaged pavement with a lane closure specifically based on the Gimcheon~Sunsan project. METHODS : The prediction results from the simulation programs were compared with field monitoring, which focused on traffic management planning, congestion (length, time, and passing speed), bypass, and user cost, among others. RESULTS : The research results showed that lane closure application and pavement repair of the aged pavement in Korea were possible, even though the prediction results were minimally different from the field monitoring. The road agency contributes to service life extension of the rehabilitated pavement using this method. CONCLUSIONS : A marginal effect caused by the lane closure was observed on travelling users or vehicles, and the user cost of pavement repair decreased. Therefore, introducing the repair method or rehabilitation in Korea is possible. Information dissemination through various media was properly done to execute the project well. Moreover, the construction area traffic utilized nearby alternative roads. Therefore, improving the repaired pavemen's service life while ensuring that the pavement management agency can provide a road with comfortable user riding quality was possible.

• Journal of Electrical Engineering and Technology
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• v.5 no.4
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• pp.530-537
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• 2010

By development of renewable energy and more efficient facilities in an increasingly deregulated electricity market, the operation cost of distributed generation (DG) is becoming more competitive. International environmental regulations of the leaking carbon become effective to reinforce global efforts for a low-carbon paradigm. Through increased DG, operators of DG are able to supply electric power to customers who are connected directly to DG as well as loads that are connected to entire network. In this situation, a community energy system (CES) with DGs is a new participant in the energy market. DG's purchase price from the market is different from the DG's sales price to the market due to transmission service charges and other costs. Therefore, CES who owns DGs has to control the produced electric power per hourly period in order to maximize profit. Considering the international environment regulations, CE will be an important element to decide the marginal cost of generators as well as the classified fuel unit cost and unit's efficiency. This paper introduces the optimal operation of CES's DG connected to the distribution network considering CE. The purpose of optimization is to maximize the profit of CES. A Particle Swarm Optimization (PSO) will be used to solve this complicated problem. The optimal operation of DG represented in this paper would guide CES and system operators in determining the decision making criteria.

• 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.

• Environmental and Resource Economics Review
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• v.12 no.2
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• pp.245-274
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• 2003

This paper analyzes the economic and environmental impacts of domestic policy to reduce greenhouse gas emissions by focusing on carbon tax, domestic emissions trading and the mixture of these policies. By utilizing a dynamic CGE model, KORTEM, this study shows that the economic cost under carbon tax is projected to be higher than that under emission trading. It is because under carbon tax 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 policy portfolio to address the climate change problem in Korea, therefore, this paper proposes the introduction of domestic emission trading scheme as the main domestic policy Instrument.

• Journal of the Korean Regional Science Association
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• v.11 no.1
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• pp.61-78
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• 1995

This study begins with a question of what spatial impact international trade policy would have following the Uruguay Round, particularly focusing on agricultural trade liberalization in Korea. Based upon the neoclassical urban economic model, it first identifies the channel in which agricultural market opening can ultimately affect both rural and urban are as; $\circled1$ Free trade will depress domestic price of agricultural products, $\circled2$ which will in turn depreciate agricultural land price. $\circled3$ The decrease in marginal supply cost for urban land will then facilitate urban sprawl, provided that the government relaxes restrictions on urban-rural land conversion. Theoretical analysis is further refined by empirical considerations that distinguish agricultural land value solely for production purpose from that for future urban, uses, and that distinguish the urbanization effect caused by the fall in the supply cost of urban land from that caused by the existing high level of demand. Utilizing the estimate of bid-price for paddy field derived from the revenue-cost relationship of rice production, simulation results show that the urban-rural boundary under trade liberalization can expand outward up to 70-85km radius in the Seoul metropolitan area, suggesting the emergency of a metropolis or even a megalopolis which extends from Seoul to the central part of the country. Since the geographic extent of urbanization effect can vary depending upon the urban spatial structure, however, it is recommended that the redevelopment option in the built - up area should always be tied up with the issue of whether to deregulate rural-to-urban land conversion.