• Environmental and Resource Economics Review
• /
• v.18 no.1
• /
• pp.139-158
• /
• 2009

With the sample of Middle East crude oil imported to South Korea, this study empirically analyzes the effectiveness of the risk management strategies using derivatives such as futures and options. Assuming the hedging period of one to twelve months, it considers a spot purchasing strategy, 1 : 1 futures hedge strategy, OLS-based minimum-variance futures hedge strategy, buying call option strategy, and collar transaction strategy. According to the ex-ante result, using the derivatives of futures or options makes lower the procurement costs when the crude oil prices is increasing. With the hedging period less than or equal to six months, the hedging strategy using futures turns out to be superior in terms of procurement cost reduction and hedging effectiveness improvement. In contrast, the hedging strategies of buying call option and collar transaction would generate better results when the hedging program last over six months.

• Environmental and Resource Economics Review
• /
• v.21 no.3
• /
• pp.441-464
• /
• 2012

As prices of energy resources such as oil and gas started to rise steadily in 2000, energy security has been one of the most important topics in the world. To secure more energy, most of countries which are highly dependent on imported energy resources try to occupy oversea oil or gas reserves, thereby intensifying competition for energy resources around world. Under this circumstance, we focus on independent E&P companies since they are relatively small size companies which are suitable for M&A. We analyze investment option values for these E&P companies using a real option model for depletable resources. Based on analytical model, empirical study is provided to examine rationality of investment for energy companies. The result shows sufficient profitability for independent E&P companies in both oil and gas projects in the North America during 2004 to 2008. In Particular, oil projects were more feasible than gas project due to lower price of gas and high volatility of gas price at that time.

• Transactions of the Korean hydrogen and new energy society
• /
• v.20 no.1
• /
• pp.22-30
• /
• 2009

Energy environment has been changing rapidly such as the fluctuation of oil prices and the effect on UNFCCC. Oil price change affects Korea's economy heavily due to her poor natural resources and large dependence of consumed energy resources. Korea takes the 4th place of importing the crude oil and 9th place in $CO_2$ emissions with the 1st place of $CO_2$ emissions increasing rate. Considering the current statue of Korea including oil price change and UNFCCC, Korea will be expected to be the Annex I nation due to Korean energy environments and the quantity of $CO_2$ emission. Energy technology development is a crucial key to cope with Korea's national energy security and environments. In this study, we establish the framework, which allocates the relative weights of assessment criteria and sub-criteria, for assessing and selecting R&D programs of energy technologies strategically. We integrated fuzzy theory and analytic hierarchy process (AHP) approach since the fuzzy AHP approach reflects the vagueness of human thoughts and perception effectively as making pairwise comparisons of criteria and alternatives. The fundamental data of this research results will support R&D planning phase for policy-makers and the production of well focused R&D outcomes.

• Journal of Korea Trade
• /
• v.27 no.5
• /
• pp.167-198
• /
• 2023

Purpose - This paper aims to compare and analyze the co-movements and information spillover effects between the international commodity futures markets and the South Korean stock markets during the COVID-19 and the 2008 financial crises. Design/methodology - The DCC-GARCH model is used in the co-movements analysis. In contrast, the BEKK-GARCH model is used to evaluate information spillover effects. The statistical data used is from January 1, 2005, to December 31, 2022. It comprises the Korea Composite Stock Price Index data and daily international commodity futures prices of natural gas, West Texas Intermediate crude oil, gold, silver, copper, nickel, soybean, and wheat. Findings - The results of the co-movement analysis were as follows: First, it was shown that the co-movements between the international commodity futures markets and the South Korean stock markets were temporarily strengthened when the COVID-19 and 2008 financial crises occurred. Second, the South Korean stock markets were shown to have high correlations with the copper, nickel, and crude oil futures markets. The results of the information spillover effects analysis are as follows: First, before the 2008 financial crisis, four commodity futures markets (natural gas, gold, copper, and wheat) were shown to be in two-way leading relationships with the South Korean stock markets. In contrast, seven commodity futures markets, except for the natural gas futures market, were shown to be in two-way leading relationships with the South Korean stock markets after the financial crisis. Second, before the COVID-19 crisis, most international commodity futures markets, excluding natural gas and crude oil future markets, were shown to have led the South Korean stock markets in one direction. Third, it was revealed that after the COVID-19 crisis, the connections between the South Korean stock markets and the international commodity futures markets, except for natural gas, crude oil, and gold, were completely severed. Originality/value - Useful information for portfolio strategy establishment can be provided to investors through the results of this study. In addition, it is judged that financial policy authorities can utilize the results as data for efficient regulation of the financial market and policy establishment.

• Applied Chemistry for Engineering
• /
• v.3 no.2
• /
• pp.201-206
• /
• 1992

Annual amount of plastics waste including rubber and leather waste, generated in 1990 was about 2,600,000 tons. Amount of generation of plastics waste has rapidly increased, but fractions of recycling and incineration have gradually decreased. Recently, two-stage incinerator, consisting of gasifier and gas combustor, draws much attention in Korea. Plastics are gasified in the starved air condition in the gasifier and produced gas is fired in the combustor. Combustion of produced gas is much easier than that of solid plastics, and produces a little pollutants. Standardzation of technology and process automation are still needed, but this incineration technology is in the commercial stage. Next topic concerned with this two-stage incineration will be how to treat complex plastics waste including toxic substances generated from automobiles and household appliances. Pyrolysis, realized by indirect heating in inert atmosphere, can provide high-quality products with minimum emissions. Many plastics are easily decomposed into oil in pyrolysis conditions, which can be utilized as chemical feedstocks, or gasoline or kerosene depending on feed materials and operating conditions. This has been demonstrated in several pilot-scale tests performed in Japan, Germany, etc. Easy removal of HCl from PVC is one of the most decisive merits of pyrolysis process. But in general, further efforts should be made for the process to obtain marketability. The future of pyrolysis process depends on public concern about environmental problems and oil prices.

• Journal of Plant Biotechnology
• /
• v.37 no.4
• /
• pp.379-387
• /
• 2010

Oilseed rape (Brassica napus L.) is an important crop due to its high oil content in the seed. Recently, the demand for the improvement of crop for biodisel energy source is increased as oil prices in the world has increased dramatically. Until now, oilseed rape breeding was carried out by cross-hybridization between different varieties and related germplasms. However, like as many other crops, the application of tissue culture and gene transformation systems has been introduced into oilseed rape breeding program including the development of transgenic canola plants. In this study, we reviewed a history of tissue culture and genetic transformation research in oilseed rape plants and indicated some important aspects for the production of transgenic oilseed rape plants.

• Environmental and Resource Economics Review
• /
• v.22 no.3
• /
• pp.547-580
• /
• 2013

As energy conservation can be realized through changes in the composition of goods and services consumed, there is a need to assess indirect and total household energy consumption. The Korean household sector was responsible for more than 55% of Korea's total energy consumption in the 1995 to 2010 period. More than 69% of household energy consumption was indirect. Thus, not only direct but also indirect household energy consumption should be the target of energy conservation. Electricity consumption became in 2009 the main source of household energy consumption in Korea. Households consume more and more electricity intensive goods and services, a sign of increasing living standards. Decrease in energy intensities of products consumed by Korean households contributed greatly to reduce the increase in the total household energy consumption. However, switching took place towards more energy intensive products, thus the structure effect was negative. It is necessary to direct consumption and production towards much less energy intensive goods and services as to reduce energy consumption or its growth rate. The Korean government should readjust low energy and electricity prices to cost-reflective prices levels as these low prices are one of the main reasons for the consumption of more energy intensive products. This study differentiates prices of oil products and electricity between households and industries, as to allow more accurate estimation.

• Membrane and Water Treatment
• /
• v.1 no.2
• /
• pp.121-137
• /
• 2010

This work presents inexpensive inorganic precursor formulations to yield submicron range symmetric ceramic microfiltration (MF) membranes whose average pore sizes were between 0.1 and $0.4{\mu}m$. Incidentally, the sintering temperature used in this work was about 800 to $950^{\circ}C$ instead of higher sintering temperatures ($1100^{\circ}C$) that are usually deployed for membrane fabrication. Thermogravimetric (TGA) and X-Ray diffraction (XRD) analysis were carried out to evaluate the effect of temperature on various phase transformations during sintering process. The effect of sintering temperature on structural integrity of the membrane as well as pore size distribution and average pore size were evaluated using scanning electron microscopy (SEM) analysis. The average pore sizes of the membranes were increased from 0.185 to $0.332{\mu}m$ with an increase in sintering temperature from 800 to $950^{\circ}C$. However, a subsequent reduction in membrane porosity (from 34.4 to 19.6%) was observed for these membranes. Permeation experiments with both water and air were carried out to evaluate various membrane morphological parameters such as hydraulic pore diameter, hydraulic permeability, air permeance and effective porosity. Later, the membrane prepared with a sintering temperature of $950^{\circ}C$ was tested for the treatment of synthetic oily waste water to verify its real time applicability. The membrane exhibited 98.8% oil rejection efficiency and $5.36{\times}10^{-6}\;m^3/m^2.s$ permeate flux after 60 minutes of experimental run at 68.95 kPa trans-membrane pressure and 250 mg/L oil concentration. Based on retail and bulk prices of the inorganic precursors, the membrane cost was estimated to be $220 /$m^2$ and $1.53 /$m^2$, respectively.

• Resources Recycling
• /
• v.19 no.1
• /
• pp.3-12
• /
• 2010

Recently, the waste energy utilization has become the main interest in energy industries, due to high oil prices, the low carbon, green growth policy and the RPS (Renewable Portfolio Standards) of our government. Therefore, energy guzzling companies such as district heating companies, textile industries are replacing energy to RDP/RPF. Especially, a lot of big companies are carrying out survey to commercialize the waste plastics pyrolysis technologies developed in Korea. In this paper, status of the pyrolysis technology of Korea were reviewed overall including basis of technology, waste plastics resources, research & development, and commercialization.

• New & Renewable Energy
• /
• v.4 no.2
• /
• pp.52-60
• /
• 2008

More people have become interested in hybrid vehicles - which have been heralded as environmentally friendly automobiles - recently as the opening of domestic hybrid vehicle market draws near. Since gasoline, diesel and LPG hybrid vehicles will be produced, a need exists to conduct economic feasibility study of each vehicle type. This research analyzed projected benefits of these hybrid vehicles based on the 1600cc model. There are two categories of benefits: 1) reduced fuel costs for the owners of the vehicles; and 2) reduced environmental pollution cost. We conducted a sensitivity analysis and estimated the domestic consumer fuel costs based on the international oil prices of 100USD, 150USD, and 200USD per barrel. The analysis showed savings of 2 to 4 million Won in fuel cost and 1 to 2 million Won in environmental pollution cost; therefore, the hybrid vehicles are not economically feasible if they are between 3 to 5 million Won more expensive than the conventional internal combustion engine vehicles.