• Environmental and Resource Economics Review
• /
• v.33 no.1
• /
• pp.1-32
• /
• 2024

The emissions trading system stands as a pivotal climate policy in Korea, incentivizing abatement equivalent to 87% of total emissions (as of 2021). As the system likely has a far-reaching impact, it is crucial to understand how the real economic activity, energy sector, as well as environment would be influenced by its implementation. Employing a macroeconometric model, this paper is the first study analyzing the effects of the Korean emissions trading policy. It interconnects the Korean Standard Industrial Classification (Economy), Energy Balance (Energy), and National Inventory Report (Environment), enhancing its real-world explanatory power. We find that a 50% increase in emission permit price over four years results in a decrease in greenhouse gas emissions (-0.043%) and downward shifts in key macroeconomic variables, including real GDP (-0.058%), private consumption (-0.003%), and investment (-0.301%). The price increase in emission permit is deemed crucial for achieving greenhouse gas reduction targets. To mitigate transition risk associated with price shocks, revenue recycling using auction could ensure the sustainability of the economy. This study confirms the comparative advantage of expanded current transfers expenditure over corporate tax reduction, particularly from an economic growth perspective.

• Transactions of the Korean hydrogen and new energy society
• /
• v.26 no.5
• /
• pp.453-462
• /
• 2015

In this study, a methodology is investigated for the development of social responsibility program employed by major domestic companies under social pressure. It is true, however, that its infancy in history and lack of experience makes it difficult to run novel programs for the companies on their own and it naturally leads to copying and/or slight modification of what others do. Utilizing widely accepted SWOT analysis, stakeholders analysis and PDCA Cycle, a methodology for the successful programs with sustainability is proposed by reflecting business nature and strategic direction. Three real cases are analyzed. In addition, relationship and position with social welfare organizations is elucidated.

• Asian-Australasian Journal of Animal Sciences
• /
• v.18 no.7
• /
• pp.1022-1028
• /
• 2005

The objectives of this study were to evaluate and compare the environmental load of two different concentrate feed supply systems to the Japanese domestic livestock industry using the Life-cycle Assessment (LCA) method. The current system was defined as that requiring 11.469 million tons of corn imported from the US by sea transport and supplied as concentrate feed to the Japanese domestic livestock industry. The new system proposed by Kaku et al. in 2004 was defined as where 802,830 tons of US imported corn would not be planted in US and would be replaced by barley planted in 278 thousand ha of Japanese domestic land left fallow for the past year. In this case, 909,000 tons of domestic harvest barley would have been supplied as concentrate feed to the Japanese domestic livestock industry in 2000. The activities taken into account within the two system boundaries were three stages: concentrate feed production, feed transportation and gas emission from the soil by chemical fertilizer. Finished compost was regarded as organic fertilizer and was put instead of chemical fertilizers within the system boundary. Adoption of this new concentrate feed supply system by the Japanese domestic livestock industry could reduce 78,462 tons $CO_2$-equivalents of global warming potential, 347 tons $SO_2$-equivalents of acidification potential, 54 tons $PO_4$-equivalents of eutrophication potential and 0.842 million GJ as energy consumption below 2,000 levels. This LCA study comparing two Japanese domestic livestock concentrate feed supply systems showed that the stage of feed transport contributed most to global warming and the stage of emission from the soil contributed most to acidification and eutrophication. The Japanese domestic livestock industry could participate in emissions trading with $CO_2$-equivalents reduced by shifting from some imported US corn as a concentrate feed to domestic barley planted in land left fallow. In that case the Japanese government could launch emissions trading in accordance with Kyoto Protocol in the future.

• The Transactions of The Korean Institute of Electrical Engineers
• /
• v.64 no.5
• /
• pp.667-679
• /
• 2015

The bearer of the power sector's ETS compliance cost is power consumer for the following reasons. Firstly, power companies are constrained in establishing appropriate strategies to comply with ETS regulations due to the structural differences between the domestic power market and emission trading system. In other words, because power companies do not have a right to determine price and production of electricity, they have to compete with other companies under disadvantaged conditions in the emission trading market. Secondly, because ETS compliance cost is part of power production costs as it is also clearly written in the national greenhouse gas reduction road-map and the second energy supply plan, the cost should be included in power price following the power market operation rule. Thirdly, the most effective method to reduce carbon emissions in power sector is to reduce power demand, which is efficiently achieved through raising power price to a realistic level. Low power price in Korea is the major cause of rising power demand which is also the major cause of rising GHG emission. Therefore, power sector's ETS compliance cost should be included in power price to encourage power consumers' actions on reducing power consumption. Fourthly, when externality cost occurs in the process of delivering public services, usually beneficiary pay principle is applied to identify the cost bearer. Since electricity is one representative public good, the bearer of power sector's ETS compliance cost is power consumer.

• Korean Journal of Air-Conditioning and Refrigeration Engineering
• /
• v.27 no.1
• /
• pp.39-43
• /
• 2015

The Energy and Green House Gas target management system was launched by the Korean Government in 2010. The Korea Emission Trading System will start in 2015. Therefore, simultaneous pursuit of energy saving and greenhouse emission reduction through energy use rationalization is an important obligation of Korean engineers, who import about 97% of domestic energy consumption. Economic analysis of the GHG emission reduction methodologies registered and approved by Korea Voluntary Emission Reduction (KVER) program was conducted. The results for waste heat recovery employed in an energy intensive pulp, paper and wood industry were reported. The emission reduction intensities were 9.7 kg $CO_2$/ton_pulp production. Net Present Value analysis showed that the GHG emission reduction was economically beneficial with an internal rate return of 60%. The results of exergy analysis indicated that the second law efficiencies of waste heat recovery system employed in KVER program were 77.3% and 53.6%. NPV decreased as the exergy decreased.

• Korea Trade Review
• /
• v.41 no.2
• /
• pp.185-202
• /
• 2016

Interests in renewable energy have been increasing with low-carbon policy and concerns about radioactivity. And solar energy is receiving attention as the most realistic energy in the industry. Demand for solar energy was started in Germany and European countries, and further expanding to other countries. And Korea became one of the high technology level countries in that industry. So, systematic analysis is needed for trading fact and overseas expansion of Korea's photovoltaic energy together with increased demand in the world. In this paper, we analyzed panel data for 25 years, from 1990 to 2014 from 11 countries that have track record with Korea's PV product. It is conducted based on Gravity model and matched with general report for Korean PV industry. But it shows different result for other factors.

• Environmental and Resource Economics Review
• /
• v.18 no.4
• /
• pp.587-635
• /
• 2009

The purpose of this study is to develop the Global Dynamic Computable General Equilibrium Model (Global CGE Model) in order to produce an economic impact analysis, including prospective obligations for the Post-2012 regime. This model explores the impact of an international emissions trading market and macroeconomic variables such as GNP, consumption, investment, imports and exports, in accordance with potential increased obligations on the Republic of Korea. Distinguishing it from existing studies, this Global CGE Model divides the global community into major economic groups, and in the capacity of the analyzed global model, reflecting the principle nations' macroeconomic indicators through the theoretical approach of endogenous growth theory. Policies such as an emissions trading scheme and carbon tax are reflected in the model. Also, in particular, the model reflects exogenous technological advances. According to this analysis, the stronger the greenhouse gas reductions, the greater the adverse effects on the economy; among macroeconomic indicators that appear, a significant decline is realized in the balance of trade, along with a significant decrease in investment and consumption. Energy dependence, in particular, plays a large role-varying in degree by industry type-, as greenhouse gas reductions would have a greater impact on energy-intensive industries. Furthermore, if Korea, currently recognized as a developing country, is given the obligation to reduce greenhouse gas emissions, competing countries such as China and other developing countries will be given an advantage.

• Environmental and Resource Economics Review
• /
• v.22 no.3
• /
• pp.459-479
• /
• 2013

To assess the feasibility of 'low carbon, sustainable growth' policy pursued of the Chinese government, this paper first measures technical efficiency, $CO_2$ shadow prices, and indirect Morishima elasticity of substitution between capital and energy for 24 of manufacturing sectors in Beijing and Chongqing, in which China launched pilot carbon emissions trading scheme, by estimating the input distance function. Based on these results, then the potential for $CO_2$ reduction, cost savings from emissions trading, and the effectiveness of capital investment in reducing $CO_2$ are compared across industries and provinces. In 2010, manufacturing industries in Beijing and Chongqing could potentially reduce the largest $CO_2$ emissions, amounting 5.2 and 17 million tons, respectively, by achieving 100% technical efficiency. While, on average, Chongqing has a comparative advantage in the cost savings from carbon trading over Beijing, Beijing is more likely to reduce $CO_2$ by expanding capital investment.

• Environmental and Resource Economics Review
• /
• v.31 no.2
• /
• pp.261-290
• /
• 2022

Although market stabilization measures have been triggered in the K-ETS, carbon price is still under uncertainty. Considering Korea's 2030 enhanced reduction target announced in October 2021, it is crucial to have practical stabilization measures to appropriately deal with price uncertainty. This study examines the quantitative effects of a price collar, which is considered as a means of alleviating price uncertainty, on expected cumulative emissions and abatement costs. There are three main scenarios: carbon tax, emissions trading system, and emissions trading system with a price collar. Monte Carlo simulation was conducted to reflect uncertainty in emission. There are several results as follows: 1) In a price collar, domestic emission target is likely to be achieved with a lower expected abatement cost than other scenarios. In addition, there is a small amount of excess emissions in this research and it would be not critical(0.1% excess than target); 2) Prohibiting banking increases the expected abatement cost. This is because firms can not intertemporally reallocate allowances to match the firm's optimal emissions path; 3) With the adoption of a price collar, government's net revenue can be positive even if the government's purchase volume of emissions allowances is more than sales volume. This is because the government sells them at price ceiling and purchases them at price floor.

• 한국신재생에너지학회:학술대회논문집
• /
• 2005.06a
• /
• pp.142-146
• /
• 2005

Standards are increasing of importance for photovoltaics. The rapid growth of production is one reason for this but standards are equally important in ensuring the quality and reliability of installed PV systems. which have a propound impact on acceptance of the technology in the expanding marketplace. Korea government (Korean Agency for Technology and Standards. KATS)make and implement a five year plans for promotion of international standardization of this field from 2004. Through these works and harmonization of PV Korea standards with international standards(international electrotechnical commission. IEC). KATS leads the technology innovations and eventually increases the international Competitiveness. Strategic collaboration with other countries is also strengthened through Korea's participation in IECEE(IEC system for conformity and certification of electrical equipment) on standards and conformity assessment. One of the major goals of the Plan is to facilitate trade between Korea and its trading partners by emphasizing harmonization of its national conformity assessment system with international norms