• Journal of Environmental Policy
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• v.2 no.2
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• pp.41-63
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• 2003

CDM(Clean Development Mechanism) project is said to be a mechanism, which profits both the investing country and the host country, while additionally contributing to the reduction of greenhouse gases of the earth as a whole. However in reality, most of the proposed projects do not end up in agreement because of the problems related to differences in recognition between the investing country and the host country of the CDM project. This outlines the background for this research which proposes a new design of institutional arrangements of CDM projects in the Northeast Asian region, mainly Japan, China and Korea. In addition, we investigate the feasibility of the proposed design. The research firstly focuses on the reduction in transaction costs that the participation of Korea will have on a Japan-China CDM project. This paper further emphasizes the potential gains that would materialize if a CDM project involved the whole Northeast Asian region, and not only one country. Our research suggests that an approximate reduction of 23% in transaction costs, and about 4% reduction in the total costs of a CDM project can be expected to follow the Korean participation. In addition to decreasing costs we find that a Korean involvement in a CDM project with Japan will lead to efficiency gains illustrated by a higher increase in the IRR(Internal rate of return) in a Japan-Korea project(11.45% to 12.21%) compared to an IRR incresement of 10.57% to 11.27% for a pure Japanese CDM project. Similar results of a rise in the IRR is found for the whole investment period of 20 years. We can hence conclude that Korean participation in a Japan-China CDM project would improve the implementation possibilities of CDM project in the Northeast Asia region.

• International Area Studies Review
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• v.20 no.4
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• pp.37-56
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• 2016

The purpose of this research is to present the implication for Korean firms' entry into the power market in Myanmar. This study investigated the characteristics of the Myanmar power market and analyzed SWOT, focusing on energy policy, power supply and demand, energy relations with neighboring countries and climate change issue. Opportunity factors are changes in energy strategies, the launch of an energy integration organization, changes in the power energy portfolio, rapid economic and power demand growth, and a clean development mechanism. The threats are high nonfulfillment of a contract, high power loss rates and low electricity distribution rates, increased energy exports to neighboring countries, and vulnerability to climate change. We suggest the use of CHP (Combined Heat and Power), Clean Development Mechanism (CDM), and Multilateral Development Bank (MDB).