• 한국신재생에너지학회:학술대회논문집
• /
• 2011.05a
• /
• pp.76.1-76.1
• /
• 2011

With the growing penetration of distributed generation including from renewable sources, smart grid power system is needed to address the reliability problem. One important feature of smart grid is demand response. In order to design a demand response program, it is indispensable to understand how consumer reacts upon the change of electricity price. In this paper, we construct an econometrics model to estimate the hourly price elasticity of demand. This panel model utilizes the hourly load data obtained from KEPCO for the period from year 2005 to 2009. The hourly price elasticity of demand is found to be statistically significant for all the sample under investigation. The samples used for this analysis is from the past historical data under the price structure of three different time zones for each season. The result of the analysis of this time of use pricing structure would allow the policy maker design an appropriate incentive program. This study is important in the sense that it provides a basic research information for designing future demand response programs.

• Environmental and Resource Economics Review
• /
• v.9 no.2
• /
• pp.333-347
• /
• 2000

We employed various econometic methods to estimate the production index elasticity and the price elasticity of elecricity demand in Korea and compared the forecasting power of those methods. Cointegration models (ADL model, Engle-Granger model, Full Informtion Maximum Likelihood method by Johansen and Juselius) and Dynamic OLS by Stock and Watson were considered. The forecasting power test shows that Dynamic OLS has the best forecasting power. According to Dynamic OLS, the production index elasticity and the price elasticity of electricity demand in Korea are 0.13 and -0.40, respectively.

• Environmental and Resource Economics Review
• /
• v.15 no.5
• /
• pp.961-974
• /
• 2006

This paper estimates output and price elasticities of the industrial water in order to provide the government with tools that help make educated decisions with regard with the water provision policies rendering the latter more efficient. The estimated output elasticity produces useful insights on the role of industrial water as an input into the production process while the estimate of price elasticity enablesus to forecast the effects of various water pricing policies. This paper employs the marginal productivity method in order to estimate the abovementioned elasticities. The magnitude of the estimated output elasticity imply that the value of industrial water is much higher than its average price while the price elasticity estimate suggests that the water pricing policy can be an effective tool of controlling the demand for industrial water.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.39 no.1
• /
• pp.49-67
• /
• 2014

This paper proposes a real time pricing model for smart grid considering consumers' behavior, real time price elasticity, and exogenous price. Based on the proposed model, we found the weight of utility over cost is the most sensitive factor compared to other factors. Also, if the electricity price is set to be changed too sensitively to energy consumption, it is warned that real time pricing sometimes can cause increment of peak-time demand and volatility. Finally, real time pricing could be less efficient when the difference between the maximum and the minimum consumption level is small.

• East Asian Economic Review
• /
• v.16 no.3
• /
• pp.249-272
• /
• 2012

This paper examines how a Korean automobile firm price-discriminates between the Korean and the U.S. markets. We argue that a Korean automobile firm's pricing behavior depends on the differences in price elasticity over the segmented markets between the countries. Our findings are that differences in price elasticity may help explain why a medium-class car's price is higher in Korea than that in the U.S. while a small-sized car's price is higher in the U.S. than in Korea, which implies that a Korean automobile firm $3^{rd}$ degree price-discriminates on the same or similar products between Korea and the U.S. This type of $3^{rd}$ degree price discrimination differs from a typical home-bias effect (charging higher prices to domestic consumers) because a small-sized car which is produced domestically sells at higher price abroad. This finding can be added as a source that violates the law of one price.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.21 no.7
• /
• pp.1139-1152
• /
• 1997

Clothing consumption expenditure (UX) data of Korean consumers during the period of 1965 to 1993 were analyzed by time series analysis technique. According to the results of regression analysis, current income and UX of the year before showed most significant influences on the current UX. This means that the absolute and permanent income hypotheses can be accepted in case of clothing expenditures. However the effect of income decreased as the economy developed. The relative price of clothing had weak or no influence on clothing expenditures. It was also found out that CSX of the year before, the change of income, relative price of clothing ware the factors that affected clothing expenditures. From the estimation of Houthakker-Taylor state adjustment model, a negative stock coefficient was obtained. That is, clothing is subject to an inventor effect and Korean consumers regard clothing as one of the durable goods. To define whether clothing is a "luxury" or a "necessity", income and relative price elasticity of clothing expenditures were estimated. Income elasticity of clothing is slightly below 1.0 in case of national aggregate expenditures, and slightly above 1.0 in case of urban consumers' expenditures. Income elasticity has declined over time. Meanwhile the coefficient of price elasticity is not significant, indicating that the relative price of clothing have little connection with clothing expenditure.lothing expenditure.

• Management & Information Systems Review
• /
• v.37 no.3
• /
• pp.65-81
• /
• 2018

This study estimated the long-run and the short-run price and income elasticity of crude oil demand by using the ARDL model in Korea. First, the long-run cointegration relationship existed between crude oil demand and price or income in the ARDL-bounds tests. Second, the long-run own price, the cross price elasticity and the income elasticity were both statistically significant elastic and sensitive in the ARDL. Third, there was autocorrelation of the residuals, but no misspecification errors and heteroscedasticity, and then the residuals showed a normal distribution. And the CUSUM & CUSUMSQ tests showed that the coefficients were stable. Fourth, the short-run own price, the cross price elasticity and the income elasticity were both statistically significant elastic and sensitive in the ARDL-RECM. The ECM with the short-run dynamics showed rapid adjustments in the long-run equilibrium of oil demand after the economic crisis. In the short-run, the sensitivity of crude oil demand to price and income changes has moved in the same direction as the long-run case. Korea, depending too much on foreign crude oil, is vulnerable to the shocks of oil prices, so rising oil prices can certainly have a negative impact on Korea's trade balance. And the elasticity of long-run oil prices may help to control and manage Korea's oil demand. The government needs to strengthen monitoring of the country's policies and market trends related to crude oil, establish strategies to customize national policies and market conditions, and strengthen active market dominance efforts through pioneering new market and diversification.

• Journal of the Korea Society of Computer and Information
• /
• v.27 no.7
• /
• pp.137-144
• /
• 2022

This study is an empirical study on whether the interval of K-pop content updates and price changes consumer purchasing intentions for domestic fandom commerce platforms that turn their profit structure online and strengthen fandom-based marketing to cope with changes in the digital environment. FGI and a survey was conducted using a conjoint analysis designed to confirm the difference in price elasticity according to the content update interval. As a result, the price elasticity of K-pop content was found to be an inelastic characteristic, and the change in price elasticity according to the content update interval was not statistically significant. This study provides basic data to be used to establish a marketing strategy for the fandom commerce market that will grow in the future.

• Korea journal of population studies
• /
• v.27 no.1
• /
• pp.81-90
• /
• 2004

The aim of this study is to estimate the own price elasticities for tobacco demand among Korean urban households. Using the expenditure data of smoking urban households, the quadratic almost ideal demand system is estimated. The estimated price elasticity of tobacco demand is -0.52 on the average value. The higher households income, the higher education level of households head, and the higher number of children, the tobacco demand gets more inelastic.

• Journal of Energy Engineering
• /
• v.21 no.3
• /
• pp.301-308
• /
• 2012

This paper attempts to estimate the demand function for the transport LPG and to analyze long-run and short-run price and income elasticities. In addition, the paper measures consumer surplus and economic value ensuing from the transport LPG consumption by utilizing the estimated long-run price elasticity. The price and the income data are the monthly real transport LPG price and the monthly composite index adjusted by real transport LPG price from 2003 to 2012. Unit root test, co-integration test and error correction model are to take the procedure of estimation of demand curve. The demand for transport LPG is considered to be inelastic and the long-run demand is more elasticity than that of short-run. Price elasticity of demand estimate here is -0.422, and the estimated consumer surplus and economic value in 2010/03 are 966 and 1,781 billion won, respectively.