• New & Renewable Energy
• /
• v.10 no.1
• /
• pp.41-49
• /
• 2014

For a proper valuation of wind power project, it is necessary to consider volatilities of key parameters such as annual energy production, electricity sales price, and long term interest rate. Real option methodology allows to calculate option values of these parameters. Volatilities to be considered in wind project valuation are 1) annual energy production (AEP) estimation due to meteorological variation and estimation errors in wind speed distribution, 2) changes in system marginal price (SMP), and 3) interest rate fluctuation of project financing which provides refinancing option to be exercised during a loan tenor for commercial scale projects. Real option valuation turns out to be more than half of the sales value based on a case study for a FIT scheme wind project that was sold to a financial investor.

• The Journal of Fisheries Business Administration
• /
• v.53 no.4
• /
• pp.51-67
• /
• 2022

The Korean tariff rate for fishery products is a single tax rate of 10% for live fish and frozen seafood, and 20% for all others. Since FTAs have been concluded with several countries, the tariffs is not an appropriate means to protect domestic fishery producers. The differential tariff rate according to the scientific name (genus) of the fishery products, which was implemented 30 years ago to protect fishery products produced in the Korean coastal waters has lost its original purpose. It seems that future fishery trade policy should focus on IUU prevention, hygiene and safety of consumers rather than protecting fishery producers through customs tariffs. This paper suggest that a paradigm shift in the fishery producers protection policies such as direct financial support from the state, protection and development of fishery resources, and support for fostering the 6th industry rather than indirect protection through tariffs.

• Korea Trade Review
• /
• v.43 no.5
• /
• pp.25-45
• /
• 2018

This paper estimates the export losses of the Korean domestic automobile industry due to US trade pressure and its economic ripple effects. Using the HS 6 digit tariff and export data from 2010 to 2017, this paper estimates the tariff elasticity of Korea's US automobile exports against a US tariff increase by applying the Poisson Pseudo maximum likelihood estimation method. After estimating Korea's export losses to the US in three trade pressure scenarios, we estimate its impact on Korean domestic production, value-added and job creation by applying the tariff impact accumulation model based on the industry input-output analysis. Empirical results show that the impact of 25% global tariff by the US on the Korean domestic economy is estimated to result in $30.8 billion in export losses for the five years from 2019 to 2023, about 300 thousand job losses, 88.0 trillion in production inducement losses, and 24.0 trillion in value-added inducement losses. The impacts of withdrawal of the automobile tariff concession are estimated at $4.27 billion export losses and 41.7 thousand job losses. A 15% tariff rate on automobile parts for 3 years is estimated to result in $1.93 billion export losses and 18.7 thousand job losses.

• Korea Trade Review
• /
• v.43 no.6
• /
• pp.215-238
• /
• 2018

Tariff reduction from FTAs are applied to imported goods, but not to traveler's goods. There are difficulties in meeting the FTA's conditions for free tariff application, such as origin of goods and direct transportation. This study suggests the optimal cut-off level of a simple tax rate applied to traveler's goods with respect to traveler' welfare and government tax revenue. Among three different scenarios of simple tax reductions by ordering its weighted magnitude of effects, the optimal tariff was found to be 2% applied to all goods. The effects of a 2% reduction of simple tax rate would increase traveler' welfare by 16.8 billion won and reduce tax revenue by only 0.34 billion won.

• Journal of Korea Port Economic Association
• /
• v.22 no.3
• /
• pp.1-22
• /
• 2006

The pilotage tariff system in port operations has received little attention in the academic literature. While studies addressing legal issues-such those concerning liability, marine accidents, and compensation for accidents-and institutional aspects have been prevalent, scant research has been conducted in the form of comparative analysis of pilotage tariff systems and current levels of pilotage charges in major ports. The purpose of this research is to investigate the rate structure of pilotage tariffs of major ports. Specifically, this study explores the current level of pilotage price and regulations by comparing the pilotage systems of six major hub ports in the world: Busan, Kobe, Hong Kong, Los Angeles, Singapore and Rotterdam. Results show that Busan Port's pilotage tariff system ranks low (5th) among these six ports. Another finding is that the simplification of Korea's pilotage tariff system will yield productivity and efficiency improvements in this area.

• The Journal of Korean Institute of Communications and Information Sciences
• /
• v.9 no.2
• /
• pp.49-61
• /
• 1984

The tariff rate of telecommunication networks in Korea is analyzed and the plans for the realization of information society is suggested on this basis. The influence of the cost-down of telecommunication networks construction, the decentralization plan of telecommunication traffics and offer of new services on the decision of telecommunication tariff rate are also descussed here.

• The Transactions of the Korean Institute of Electrical Engineers A
• /
• v.51 no.4
• /
• pp.183-187
• /
• 2002

The efficient and rational transmission tariff structure is one of the crucial factors in creation of fair and competitive electricity markets. Transmission charge can be largely categorized into the line usage charge, system reliability charge, access charge and others. Any transmission tariff should be able to reflect these cost components reasonably. This paper suggests an approach amenable to allocating the transmission reliability costs reasonably with reflection of line sensitivity and line outage rate.

• Korean Journal of Agricultural Science
• /
• v.47 no.2
• /
• pp.337-347
• /
• 2020

Since 2012, despite the fact that tariff rate quotas (TRQ) in the form of dried peppers has not been imported, the imports of pepper-related items such as low- tariff frozen peppers (27%) and other sauces (45%) have increased, there has been a problem in the domestic pepper industry, in which the domestic self-sufficiency rate has declined. The purpose of this study was to find out whether the operation of chili pepper TRQ has the effect of suppressing the imports of pepper-related items from China. We analyzed the import substitution effect (import suppression effect) through causal analysis of the imports of red pepper TRQ, frozen peppers, and other sauces using the structural equation model analysis method. As a result of the hypothetical scenario analysis, when the government imports and releases 7,185 tons of pepper TRQ in 2019/20 (scenario), private imports were estimated to decrease by only 3,060 tons. In other words, the import substitution effect between imported items was estimated to decrease about 2,079 tons of private dried peppers, and about 981 tons of imported pepper-related items. There was an effect of suppressing the imports of pepper-related items such as frozen peppers, but it was analyzed to be insignificant. That reason was that the replacement substitution elasticity of the pepper-related items for TRQ import was less than 1 (inelastic). Therefore, it is judged that the government's operation of the pepper TRQ is preferably focused on stabilizing domestic prices rather than focusing on import control of pepper-related items.

• Journal of Distribution Science
• /
• v.10 no.5
• /
• pp.45-55
• /
• 2012

In Korea, the parcel delivery service was launched officially in 1992, and the market has grown to 13.2 billion units, or 3.5 trillion won, as of 2011. The service companies accept small packages under 30 kg and deliver them on the next day in most domestic areas. This service plays an important role in business and personal activities. The parcel service companies have themselves designed the tariff for the delivery service based on two criteria: weight and the sum of three side lengths. Further, the tariff is graded in steps of three or four rate structures based on size (small, medium, large, and extra-small). However, the basic freight rate is generally decided according to the cargo's weight or measurement size, and an extra rate is added according to some factors (handling, stowability, liability, and so on). The parcel service tariff adopted by the companies is illogically designed, and this study was carried out to assess the need for redesigning the tariff structure. The cargo volume cannot be logically reflected by three side lengths. For example, two parcels measuring 160 cm based on three side lengths may have different volumes, one measuring 0.152 cbm (53.33 cm × 53.33 cm × 53.34 cm) and the other 0.05 cbm (100 cm × 50 cm × 10 cm). A small package of less than120 cm (sum of three side lengths) may have a volume of as much as 0.064 cbm (40 cm × 40 cm × 40 cm). Sample comparison showed that 17% of medium-size parcels (based on the sum of three side lengths) are small-volume packages, 24% of large-size parcels are small- or medium-volume packages, and 40% of extra-big-size parcels are big- or under-size packages. Therefore, if parcel service companies rate their services for volume cargo based on the three side lengths standard, users may have to pay higher than normal rates, particularly because a large percentage of parcels are volume cargo. According to this study, the average weight per 1 cbm is less than 300 kg. Therefore, users face an increasing risk of paying higher than logical freight charges. Generally, transportation companies are called "public interest enterprises," and parcel service companies operate as postal services. Public interest enterprises must provide the delivery service to all customers without discrimination at a reasonable service level and logical service charges. Therefore, parcels service tariffs must be designed and adopted logically. In this study, freight theories and prior research findings were used to consider the importance of freight rates, and distortion of parcel service rates based on the three side lengths system was verified through regression analysis of a parcel sample and sample comparison. In conclusion, volume sizes based on three side lengths have a higher correlation to the rate level than does the sum of three side lengths. Further, compared to the sum of three side lengths, volume size has a higher correlation to cargo weight, which is the most basic factor determining transportation cost. Therefore, the existing parcel service tariff should be changed to weight- and volume-based rates, and the tariff must be graded in steps of 8 to 10 higher rate structures for a logical freight schedule based on service cost.

• Journal of Fisheries and Marine Sciences Education
• /
• v.20 no.1
• /
• pp.78-89
• /
• 2008

This study is intended to analyse the economic sensitivity of imported fishery products due to decrease in or elimination of tariff rates through the progress of free trade. Forty-seven species of fishes were selected for this study on the basis of the HS Code. The substitution and price effects were calculated using the price elasticities of both domestic and imported demands for fishery products under the assumption of 5% decrease in a tariff rate. Seven main economic variables were extracted from the fishery industry which can mediate the substitution and price effects. A multiple regression analysis was conducted to obtain the influence weights of these main economic variables on both effects. The order of sensitivity of the fishes was calculated using these weights. The 47 fish species were classified into four groups according to their sensitivity based on the means and the standard deviations of their total scores on seven main economic considerations. Nine fish species such as squids, hair tails, shellfishes, and crabs belonged to the hyper-sensitive group, whereas 15 fishes such as eels, sea breams, and sea weeds belonged to the sensitive group. Twelve species including common sea basses, cods, and abalones were among the less-sensitive group, and 11 species including skate rays and mud fishes comprised the non-sensitive group.