• Korean Journal of Construction Engineering and Management
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• v.15 no.1
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• pp.111-121
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• 2014

The Clean Development Mechanism (CDM) allows New & Renewable Energy projects to make additional income by selling CER's, which represent the amount of Green House Gases(GHG) that is reduced in the project. However, forward contracts used to hedge fluctuating market prices does not allow projects to sell CER's at a premium. As an alternate approach to maximize CER revenue, CER's are modeled as a 'real option', in which CER's are sold only above the desired sales price. Using the Binomial Option Pricing model, the resultant lattices are used to determine whether to sell, defer or abandon the option at individual nodes. Overlaying Pascal's Triangle on the lattices also enabled the calculation of the annual probabilities for deferring CER sales without incurring downside losses. Application to an actual Landfill Gas project showed increased overall NPV, and that CER sales could be deferred at a maximum of 2 years. The proposed framework allows transparency in the analysis and provides valuable and strategical information when making investment decisions related to CER sales of CDM projects.

• Journal of Korea Port Economic Association
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• v.31 no.1
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• pp.15-36
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• 2015

The purpose of this paper is "A Study on the Establishment of Distribution and Logistics System in the unified Korea". The main conclusion of this paper are as follows : North and South Korea shall conjunctionally foster the exchange and cooperation area and operate the joint pilot project to combine distribution and logistics system. To solve the problems of the maritime affairs, Fisheries, and international logistics, the cooperative agreement between North and South Korea will be needed to protect and develop of shipping, aviation and shipbuilding industry. Unification of two Koreas must be prepared as stage by stage ; ${\cdot}$Stage1(preparation period) : initiation of peace area. ${\cdot}$Stage2(development period) : forming the exchange and cooperation area ${\cdot}$Stage3(settlement period) : establishing peace belt on border area. After the unification, two Koreas must plan and undertake the construction of the distribution and logistics infrastructures, establishment of SCM system through Network and the connection to China through railway and road Network.