• Environmental and Resource Economics Review
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• v.21 no.3
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• pp.627-681
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• 2012

This paper starts with a model of monopolistic competition and endogenous growth, and it adds pollution as an input to production. Then I adopt environmental quality as a renewable resource used in production. I show that increasing returns due to specialization of clean activities as inputs can help lead to sustainable growth with no harm to environmental quality. I also compare and evaluate alternative policy combinations (i.e. taxes +subsidies) that correct two distortions from pollution and monopolistic competition. Finally, I find that, if the productivity of environment in final good production is not sufficiently enough, the number of clean goods tends to increase with more environmental concerns.

• Ocean and Polar Research
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• v.40 no.4
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• pp.237-247
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• 2018

This study aims to estimate optimal harvests, fishing efforts, and stock levels of hairtail harvested by the large pair bottom trawl, the large otter trawl, the large purse seine, the offshore long line, and the offshore angling fisheries by using the surplus production models and the current value Hamiltonian method. Processes of this study are as follows. First of all, this study estimates the standardized fishing efforts regarding the harvesting of the hairtail by the above five fishing gears based on the general linear model developed by Gavaris. Secondly, this study estimates environmental carrying capacity (k), intrinsic growth rate (r), and catchability coefficient (q) by applying the Clarke Yoshimoto Pooley (CY&P) model among various surplus production models. Thirdly, this study estimates the optimal harvests, fishing efforts, and stock levels regarding the hairtail by the current value Hamiltonian method, including the average landing price, the average unit cost, and the social discount rate. Finally, this study attempts a sensitivity analysis to figure out changes in optimal harvests, fishing efforts, and stock levels due to changes in the average landing price and the average unit cost. As results induced by the current value Hamiltonian method, the optimal harvests, fishing efforts, and stock levels regarding the hairtail caught by several fishing gears were estimated as 33,133 tons, 901,080 horse power, and 79,877 tons, respectively. In addition, from the results of the sensitivity analysis, first of all, if the average landing price of the hairtail constantly increases, the optimal harvests of it increase at a decreasing rate, and then harvests finally slightly decrease as a result of decreases in stock levels. Secondly, if the average unit cost of fishing efforts continuously increases, the optimal fishing efforts decreases, but optimal stock levels increase. Optimal harvests start climbing and then decrease continuously due to increases in the average unit cost. In summary, this study suggests that the optimal harvests (33,133 tons) were larger than actual harvests (25,133 tons), but the optimal fishing efforts (901,080 horse power) were much less than estimated standardized fishing efforts (1,277,284 horse power), corresponding to the average of the recent three years (2014-2016). This result implies that the hairtail has been inefficiently harvested and recently overfished due to excessive fishing efforts. Efficient management and conservation policies on stock levels need to be urgently implemented. Some appropriate strategies would be to include the hairtail in the Korean TAC species or to extend the closed fishing season for this species.

• The Transactions of the Korean Institute of Electrical Engineers P
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• v.67 no.1
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• pp.21-26
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• 2018

Due to the international environmental regulations and changes in policies, the demand for generators using the renewable energy is increasing. However, renewable energy generators with intermittent output characteristics such as solar and wind power generators, need the buffer facilities such as ESS during system operations. However, because of low price competitiveness in energy storage system, it is difficult to operate the renewable energy generator with ESS. Therefore, the government has recently proposed a policy to compensate the REC for renewable energy system with ESS. For all this, since the initial cost of the ESS is high, it is the most important to calculate and operate the optimal capacity of the ESS through an economic analysis. In this paper, we proposed the method of calculation the optimal capacity of ESS and analyzed economic feasibility of renewable energy system using the ESS according to depreciation in ESS price.

• Journal of the Korean Society of Environmental Restoration Technology
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• v.24 no.2
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• pp.115-126
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• 2021

Strategic Environmental Impact Assessment (SEA) is a decision-making process taking into account the environmental impact, economic and social impact of policies, plans, and programs at the higher stage prior to the project plan for promoting sustainable development. In this study, we analyzed the process and criteria for selecting appropriate alternatives when establishing development plan in SEA. First, the criteria for estimating changes in ecosystem services following the implementation of development project of industrial complex were presented. Second, alternative evaluations were conducted through an analysis of ecosystem service scenarios to explore suitable alternatives in Anseong. As a result, the environmental quality of selected area as the existing project site deteriorated according to the implementation of the project, and the dimensional reduction technique confirmed that the change in ecosystem service factors in project area was the optimal location. In addition, the results of the scenario assessment to explore suitable alternatives in Anseong City showed that the existing site had large capacity in terms of water quality control services (scenario 1), scenario 2 in terms of preconditioning services, and scenario 3 in terms of water supply services. The guidance of Ecosystem service assessment is expected to be available in decision-making of large-scale strategies (e.g., SEA) and projects by presenting more quantitative criteria for determining the adequacy and location feasibility of development plans and policy plans. This is expected to require various support, including legislation and revision of related laws, believed to be supported by advanced research.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.05a
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• pp.143-147
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• 2006

Several regulations on converting reusable products are established in many countries, due to the emphasis on environmental issues on manufacturing. Many companies consider reusable and returned items in addition to purchasing new items. In this paper we suggest several algorithms to determine the near optimal quantities of items for converting and new items for purchasing. The reusable items are converted into end items, each facing normally distributed demand in a single period of interest. We develop a mathematical model and a genetic algorithm(GA) to compare the number of convertible units and new items to be purchased. Computational results demonstrate the efficiency of the developed algorithms.

• Environmental and Resource Economics Review
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• v.27 no.4
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• pp.639-666
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• 2018

This paper analyses the investment options of groundwater development project under water price uncertainty. The optimal investment threshold price which trigger the investment are calibrated base on monopolistic real options model. Stochastic dynamic model is set to reflect the uncertainty of water price which follows the GBM (Geometric Brownian Motion) process. Our finding from non-cooperative investment decision model is that uncertainty of water price could deter the groundwater investment by considering the existence of option values. For policy markers, it is easy to manage 'charges for utilization of groundwater' rather than 'performance guarantee ratio' when managing groundwater investment with pricing policy. And it is necessary to make comprehensive and well-designed policies considering the characteristics of regional groundwater reservoir and groundwater developers.

• Environmental and Resource Economics Review
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• v.24 no.1
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• pp.1-53
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• 2015

In environmental policy areas, a greater use of economic instruments (EIs) has recently been observed in many countries. However, EIs are heterogeneous policy tools. The textbook case of a Pigouvian tax is far from widely used, mainly due to the information requirements and other structural and institutional constraints. The successful implementation of EIs might heavily depend on pre-existing structural and institutional conditions. Moreover, these institutional conditions are particularly unfavorable in developing countries. Using a simple analytical general equilibrium model, this paper examines how these constraints affect the welfare gain from the introduction of environmental taxes in developing countries. First, this paper solves for the second-best optimal Pigouvian tax and output tax in the presence of a distortionary tax on market use of labor. The result confirms that an environmental output tax achieves a socially-efficient level of emissions in the least-cost manner only if the nature of the linkage between the tax base and the environmental damage is fixed. Second, incorporating structural and institutional constraints into the model through a set of parameter values from China and the US, this paper calculates the net welfare effects of either using the ideal Pigouvian tax or instead using an output tax. The numerical simulation results show that the net welfare gain from the use of an ideal Pigouvian tax could be more than six times larger than that of an output tax in developing countries. On the other hand, the welfare gain is only 50 percent in developed countries. This means that the potential welfare disadvantage from using output taxes instead emissions tax for environmental purposes could be much greater in the case of developing countries.

• Environmental and Resource Economics Review
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• v.15 no.5
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• pp.827-858
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• 2006

The paper presents game theoretic models for self-enforcing coalition formation in order to sustain effective international environmental agreements(IEAs). The model analyzes how the intrinsically strategic nature of a government's environmental policies(the emission allowance standard) calls for rules to sustain an IEA. Focusing on the recent theoretical developments in the infinitely repeated game, the paper introduces some mechanisms to show how self-interested sovereign countries are cooperatively able to maintain an IEA rather than defect to initially profit at the expense of a pollution heaven later on. For a more realistic case needed to sustain an IEA, an optimal international environmental policy with both signatories and non-signatories under imperfect monitoring is also explored. In this extension of the model, the derivation process for a critical discount factor, a trigger price level and the length of punishment period is briefly discussed.

• Korean Journal of Soil Science and Fertilizer
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• v.48 no.5
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• pp.509-514
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• 2015

Indicators of environmental conditions qualitatively and quantitatively describe the state of the environment and natural resources, and the OECD (Organization for Economic Cooperation and Development) has initiated and suggested AEIs (Agri-Environmental Indicators) to assess trends over time of the effects of agriculture on the environment and the effectiveness and efficiency of agricultural and environmental policy measures since 1990's. This study aims to develop the state indicators of water quality for agricultural water, surface and groundwater, to evaluate the environmental impacts of agricultural activities and policies by qualifying the environmental levels of a nation. Status indicators were calculated according to the agricultural water quality standards of OECD and Korea, and their trends were analyzed over time. Particularly, nitrate ($NO_3{^-}$) status indicators of ground water in 2013 were significantly lower than the ones in 2000. Overall, the water quality indicators of surface water in 2013 were higher than the ones in 2012, except for pH and DO. The groundwater quality indicators in 2013 were lower than those of previous years. The optimal management indicators were calculated to assess agricultural surface water and groundwater quality. The findings of this study indicated that the state indicators could play a significant role to establish policies and procedures for managing and conserving water resources. This study also discussed water pollution caused by agricultural and industrial effluents.

• Journal of Climate Change Research
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• v.7 no.2
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• pp.157-167
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• 2016

This study aims to evaluate the effect of shortened final cutting age by estimating future $CO_2$ absorption in each different scenarios based on each final cutting ages before and after shortening. We used $5^{th}$ Forest Type Map and Forest Yield Table to obtain information to estimate $CO_2$ absorption of forest. We also designed a simulated future scenarios from 2010 to 2100 which repeats cutting and reforestation according to respected each final cutting ages. As the result, number of cuttings and total amount of $CO_2$ absorption of forest were increased with shortened final ages. Total cutting times increased up to 2 in both minimum and maximum amount for Quescus spp. and Larix kaempferi. Maximum number of cutting of Pinus densiflora and minimum number of Pinus koraiensis increased by 1. Total $CO_2$ absorption increased 12％ for Quercus spp. which had the largest number of increase in cutting times, while total $CO_2$ absorption of Pinus koraiensis only increased by 1％. The result could be used to evaluate the changes in forest management plans and policies and then develop optimal final age for efficient sustainable forest management plans.