• Environmental and Resource Economics Review
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• v.13 no.4
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• pp.593-619
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• 2004

This study analyzes the interfuel substitution of energy demand in Korean manufacturing sector using static and dynamic linear logit models. For the period of 1981~2002, this study uses petroleum, electricity, natural gas and coal as energy sources. According to the empirical results, firstly, the own-price elasticity of coal has been increased steadily even though its elasticity is smallest compared with those of other energy sources. On the other hand, price elasticity of natural gas is largest, but its value has been decreased after 1997. Price elasticities of petroleum and electricity are very stable over the sample period. One of the main features in trends of interfuel substitution is as follows. Substitution effect of a change in price of natural gas on both petroleum and coal has been increased especially after 1997. The implication of the empirical results is summarized as follows: First, the fact of inelastic own-price elasticity of petroleum implies that the dependency of Korean manufacturing sector on petroleum and coal will be persistent even in a sharp fluctuation of petroleum price. Second, the effects of price increase in natural gas on demand for petroleum and coal are very significant. Thus, price decline of natural gas rather than price declines of coal and petroleum could be more effective as an energy price policy for the reduction of $CO_2$ emission. The assessment on this implication will remain for future researches.

• Geosystem Engineering
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• v.21 no.6
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• pp.297-308
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• 2018

In this paper, we investigate the differences between LNG price of South Korea and Japan. Although S. Korean and Japanese LNG markets have similar structures, there are some differences in the price formation. From DCC-MGARCH, we confirm that Japan LNG price have less persistence of disturbance on time than S. Korean LNG price. The conditional correlation also shows linkage effects between LNG prices and impacts of S-curve and DS-curve. Moreover, ARDL estimation result shows that there is co-integration in all models and that impacts of Fukushima accident and LNG volumes are responsible for the increase in Japanese LNG price. Also, adjustment speed of error correction term shows that Japan's deviation from long-run equilibrium disappears faster than S. Korea does, indicating relatively strong Japanese linkage between LNG price and oil price.

• Journal of Digital Convergence
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• v.7 no.3
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• pp.83-92
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• 2009

This research investigates the present situation of petroleum market and the potential strategy which help gas station obtain competitive advantages. Specifically, this research chooses five factors (product quality, service, price, multi-function, easy entrance) which are believed to be extensively related to repurchasing intention. The findings are as follows; First, four factors associated with gas station choice (product quality, service, price, multi-function) are related to repurchase intention except easy entrance. Second, sex and age have moderating effects between factors and repurchase intention. To keep and preoccupy new customers, the administrators of petroleum industry and gas station should establish sales/administration strategies considering these above.

• 한국디지털정책학회:학술대회논문집
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• 2007.06a
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• pp.191-204
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• 2007

This research investigates the present situation of petroleum market and the potential strategy which help gas stat ion obtain compel it ive advantages. Specifically, this research chooses five factors (product quality, service, price, multi-function, easy entrance) which are believed to be extensively related to repurchasing intent ion. The findings are as follows ; First, four factors associated wi th gas stat ion choice (product quality, service, price, multi-function) are related to repurchase intent ion except easy entrance. Second, sex and age have moderating effects between factors and repurchase intention. To keep and preoccupy new customers, the administrators of petroleum industry and gas station should establish sales/administration strategies considering these above.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.553-581
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• 2014

This paper analyzes competition among service stations in the Korean gasoline market. We consider spatial differentiation as a source of product differentiation as well as the characteristics of the stations and vertical contracts between refiners and retailers as factors causing changes in equilibrium prices in the Korean gasoline retail market. The effect of the government's price disclosure policy on the retail market competition is also analyzed. Moran's I test indicates that the prices of neighboring gas stations are spatially correlated in the market. It is also found that gasoline prices for vertically integrated stations are much lower than those for independent stations. In addition, unbranded stations charge lower prices than branded stations but also induce branded stations to price more competitively. Meanwhile, the government's price disclosure policy did intensify price competition in the retail gasoline market. It is inferred that the price disclosure policy contributed to retailers gaining more bargain power in price negotiation with refiners, causing an eventual increase in retail prices.

• Journal of Hydrogen and New Energy
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• v.23 no.4
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• pp.412-419
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• 2012

Increasing demand for natural gas and higher natural gas prices in the recent decades have led many people to pursue unconventional methods of natural gas production. POSCO-Gwangyang synthetic natural gas (SNG) project was launched in 2010. As the market price of natural gas goes up, the increase of its price gets more sensitive due to the high cost of transportation and liquefaction. This project can make the SNG economically viable. In parallel with this project, KEPCO (Korea Electric Power Corporation) joined in launching the SNG Quality Standard Bureau along with KOGAS (Korea Gas Corporation), POSCO and so on. KEPCO Research Institute is in charge of SNG fueled gas turbine combustion test. In this research, several combustion tests were conducted to find out the effect of hydrogen contents in SNG on gas turbine combustion. The hydrogen in synthetic natural gas did not affect on gas turbine combustion characteristics which are turbine inlet temperature including pattern factor and emission performance. However, flame stable region in ${\Phi}$-Air flow rate map was shifted to the lean condition due to autocatalytic effect of hydrogen.

• Korea Real Estate Review
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• v.24 no.1
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• pp.7-14
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• 2014

This study, as the temporal and spatial data for the real price apartment in Seoul from January 2006 to June 2013, empirically compared and analyzed the estimation result of apartment price using OLS by hedonic price model for the problem of space-time correlation, temporal autoregressive model (TAR) considering temporal effect, spatial autoregressive model (SAR) spatial effect and spatiotemporal autoregressive model (STAR) spatiotemporal effect. As a result, the adjusted R-square of STAR model was increased by 10% compared that of OLS model while the root mean squares error (RMSE) was decreased by 18%. Considering temporal and spatial effect, it is observed that the estimation of apartment price is more correct than the existing model. As the result of analyzing STAR model, the apartment price is affected as follows; area for apartment(-), years of apartment(-), dummy of low-rise(-), individual heating (-), city gas(-), dummy of reconstruction(+), stairs(+), size of complex(+). The results of other analysis method were the same. When estimating the price of real estate using STAR model, the government officials can improve policy efficiency and make reasonable investment based on the objective information by grasping trend of real estate market accurately.

• Journal of Energy Engineering
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• v.22 no.4
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• pp.376-385
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• 2013

There are conflicts about energy price increase among government, producer, and consumer. The supplier insists on price increase for escaping running a deficit and business continuity, but the consumer concerns about worsening profitability and price rise. This study investigates the effects of energy rate increase on national economy using input-ouput(I-O) analysis. This study attempts to analyze the effects of national economy due to Coke and hard-coal, Naphtha, Gasoline, Kerosene, Light oil, Heavy oil, Liquefied petroleum gas, Electric utilities, Manufactured gas supply and Steam and hot water supply (using input-output table for the year 2011, Korea.) The results of the sectoral price changes due to a 10% increase in energy price that is obtained from the Leontief price model are presented in article. The result of this analysis is presented: The impact of the 10% increase in electricity rate on the general price level is estimated to be 0.2196%. In case of Kerosene, the impact is 0.1222%. It shows that Electric utilities are approximately 18 times larger price inducing effect as Kerosene. Also, this study indicates 3 years results sequentially to make it possible to observe trend. Then, study suggests balancing price by making each energy source adjusted.

• Environmental and Resource Economics Review
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• v.9 no.5
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• pp.925-945
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• 2000

This paper analyses the impact of energy-saving investment on Greenhouse gas emissions using a model of energy demand in Korea. SUR method was employed to estimate the demand equation. The econometric estimates provide information about the energy price divisia index, sector income, and energy saving-investment elasticities of energy demand. Except for energy price divisia, the elasticities of each variable are statistically significant. Also, the price and substitution elasticities of each energy price are similar to the results reported by the previous studies. The energy-saving investment is statistically significant and elasticities of each sector is inelastic. Using the coefficient of energy-saving investment and carbon transmission coefficient, the amount of reduction of energy demand and the reduction of carbon emissions can be estimated. The simulation is performed with the scenario that the energy-saving investment increase by 10~50%, keeping up with Equipment Investment Plan of 30% increase in energy-saving investment by 2000. The results show that the reduction of energy demand measured as 11.2% based upon 1995's level of the energy demand, in industrial sector. Accordingly, the carbon emissions will be reduced by 11.3% based upon 1995's level of the carbon emissions in industrial sector.

• Environmental and Resource Economics Review
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• v.31 no.2
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• pp.141-163
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• 2022

This paper empirically analyzes the effect of renewable electricity generation on the System Marginal Price (SMP) in Korea. Using an ARX-GARCHX model with hourly data from 2016 to 2020, we evaluate SMP determinants and merit order effects. As a result, we find that solar and wind power, as well as gas price and total load, play a critical role in the SMP. In particular, solar power reduces the SMP level but raises volatility during peak and off-peak periods. This result implies that SMP may fall as renewable electricity generation increases, leading to a decrease in the profitability of existing power plants and investment in renewables. On the other hand, even if the subsidy of renewable energy increases the burden on the SMP, it can be offset by the merit order effect, which lowers the SMP.