• Korea journal of population studies
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• v.25 no.1
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• pp.257-289
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• 2002

In this study we analyse how the tobacco prices have an effect on the national health. The level of tobacco price will fluctuate its consumers demand and eventually affect the national health status. We estimate tobacco consumption function as well as households'demand system in which tobacco and health expenditure functions are included. Demand elasticities are estimated and evaluated in order to find future policies to improve the national health by controlling the national tobacco consumption There are two econometric approaches app1ied in this study. The lent tobacco demand analysis method is mm tobacco consumption function model. Using national indices of tobacco price, tobacco consumption and other related variables, tobacco consumption function is estimated. The other is micro demand system analysis by using Korean urban households expenditure data during the period of 1991 to 1999. The own price elasticity which is estimated from national tobacco demand per capita is -0.19 for all people and -0.176 for the adults over 18, which means 100% price increase will cause decease of tobacco demand at 19% and 17.6% per each The cross vice elasticity which is estimated between tobacco and health expenditure of urban households demand system is -0.2328, which implies 100% of tobacco price increase will decrease 23.28% of health expenditure. The low price elasticities imply that tobacco price increase will increase total tobacco sales volume. 100% of tobacco price increase will bring about 79% increase of total tobacco sales volume according to our scenario. Korea's tobacco demand is negatively responsive to fluctuations in its price. The health expenditure is also negatively relatedto the tobacco price fluctuation. These empirical outputs could be utilized as the basis of government's tax policy to control national tobacco consumption in the future.

• Journal of Korean Society of Water and Wastewater
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• v.20 no.4
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• pp.527-534
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• 2006

Demand side management(DSM) is the newly raised issues in the water resources management in recent. Many of the policy tools among demand management, the most important measures might be a pricing system. Furthermore, the responses of consumers on the price for water consumption level is the key factor for policy making. Here, we estimated panel data for 167 regions and over 7 years periods in Korea. Compare to other previous studies the price elasticities were somewhat low. The estimated price elasticity was -0.05. It was because the short term estimated period may derive lower elasticities. However, it might be a recent trend after the continuous increment of water pricing and consumers not willing to decrease their residential water consumption with increasing water pricing. According to this results, water saving effect might be much smaller than we expect with pricing policy. However, It does not imply there is no price effects on water consumption and it's still meaningful as a tool of water management.

• International Area Studies Review
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• v.14 no.1
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• pp.279-298
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• 2010

This paper investigates the characteristics of Korean international tourism demand for selected 13 destination countries by estimating income and travel price elasticities using quarterly data from 1990:1 to 2006:2. Major findings of this paper could be summarized as follows. First, long-run equilibrium relationships between Korean international tourism demand for 13 destination countries, real income and travel price variables are confirmed. Second, the estimated income elasticities of Korean tourism demand for 13 destination countries are all elastic; especially, those for Australia, Philippine, Thailand and China are very elastic. And their estimated values vary with destination countries, which implies the income effects for 13 destination countries are all different; however there is no evidence that the income effects could be characterized by traveling distances. Third, the estimated travel price elasticities of Korean tourism demand for 13 destination countries also differ from destination countries; in most cases, they are elastic except those for Hong Kong and United States. The most travel price elastic countries are Canada, Australia and New Zealand.

• Journal of Platform Technology
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• v.6 no.2
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• pp.10-18
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• 2018

The purpose of this study was to empirically analyze relations between color changes in the product specification and demand changes with price elasticity in the Chinese mobile phone market. In previous studies on price elasticity, the usual analysis units were product categories or SBU within a given product category. Unlike them, the this study set an analysis unit of price elasticity to focus on colors, which are investigated in the research fields of experiential marketing, aesthetic marketing, and cognitive psychology. Actual sales data according to the mobile phone price changes by the color were based on the sales volume of a sales agency at China's largest B2C site. The findings were as follows: first, price elasticity according to the six colors was higher than the absolute value of 1, which means that demands made flexible reactions to price changes. Secondly, there were differences in price elasticity according to the colors. Aroma white color made the smallest increase in sales volume at the same price discount, whereas diamond color made the biggest increase in sales in the same price discount scope. These findings indicate that more profit can be generated in mobile phone sales in China by setting different price discount or increase rates according to colors or producing different amounts of mobile phones according to colors. Distributors or sales agents can have a chance for higher profit by ordering and selling mobile phones in certain colors than others from mobile phone manufacturers. The academic findings indicates that there are differences in preference and price elasticity according to colors under the mobile phone category in the Chinese market, which means that the present study made an academic contribution by proposing a microscopic analysis unit for product price elasticity and expanding its concept.

• Journal of Energy Engineering
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• v.22 no.1
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• pp.1-7
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• 2013

This paper attempts to estimate the residential electricity demand function, using survey data of 521 households in Korea. As the residential electricity demand function provides us information on the pattern of consumer's electricity consumption, it can be usefully utilized in predicting the impact of policy variables such as electricity price and forecasting electricity demands. We apply least absolute deviation(LAD) estimation as a robust approach to estimating parameters. The results showed that price and income elasticities are -0.68 and 0.14 respectively, and statistically significant at the 10% levels. The price and income elasticities portray that residential electricity is price- and income-inelastic. This implies that the residential electricity is indispensable goods to human-being's life, thus the residential electricity demand would not be promptly adjusted to responding to price and/or income change.

• Environmental and Resource Economics Review
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• v.24 no.2
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• pp.365-410
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• 2015

Block-rate structures are widely used in utility-pricing, including the Korean residential electricity sector. In the case of the current pricing structure, Korean citizens are highly concerned about incurring excessive electricity costs. For these reasons, there have been many discussions concerning mitigation of the strict pricing structure. Existing studies on the residential electricity demand function under block-rate structure have the following three issues - the consumer's budget constraint is non-linear, perceived price under block-rate structure is uncertain, block-rate structure has endogeneity in the price variable. In this context, this paper estimates the residential electricity demand function using micro-level household expenditure data and simulates the impact of alternative block-pricing schedules.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.4
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• pp.29-37
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• 2017

This papers focuses on remanufacturing processes in a closed loop supply chain. The remanufacturing processes is considered as one of the effective strategies for enterprises' sustainability. For this reason, a lot of companies have attempted to apply remanufacturing related methods to their manufacturing processes. While many research studies focused on the return rate for remanufacturing parts as a control parameter, the relationship with demand certainties has been studied less comparatively. This paper considers a closed loop supply chain environment with remanufacturing processes, where highly fluctuating demands are embedded. While other research studies capture uncertainties using probability theories, highly fluctuating demands are modeled using a fuzzy logic based ambiguity based modeling framework. The previous studies on the remanufacturing have been limited in solving the actual supply chain management situation and issues by analyzing the various situations and variables constituting the supply chain model in a linear relationship. In order to overcome these limitations, this papers considers that the relationship between price and demand is nonlinear. In order to interpret the relationship between demand and price, a new price elasticity of demand is modeled using a fuzzy based nonlinear function and analyzed. This papers contributes to setup and to provide an effective price strategy reflecting highly demand uncertainties in the closed loop supply chain management with remanufacturing processes. Also, this papers present various procedures and analytical methods for constructing accurate parameter and membership functions that deal with extended uncertainty through fuzzy logic system based modeling rather than existing probability distribution based uncertainty modeling.

• Journal of Energy Engineering
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• v.25 no.2
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• pp.37-44
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• 2016

The demand for electricity has a considerable impact on various energy sectors since electricity is generated from various energy sources. This paper attempts to estimate the electricity demand function and obtain some quantitative information on price and income elasticities of the demand. To this end, we apply a lagged dependent variable model to derive long-run as well as short-run elasticities using the time-series data over the period 1991-2014. Our dependent variable is annual electricity demand. The independent variables include constant term, real price of electricity, and real gross domestic product. The results show that the short-run price and income elasticities of the electricity demand are estimated to be -0.142 and 0.866, respectively. They are statistically significant at the 5% level. That is, the electricity demand is in-elastic with respect to price and income changes in the short-run. The long-run price and income elasticities of the electricity demand are calculated to be -0.210 and 1.287, respectively, which are also statistically meaningful at the 5% level. The electricity demand is still in-elastic with regard to price change in the long-run. However, the electricity demand is elastic regarding income change in the long-run. Therefore, this indicates that the effect of demand-side management policy through price-control is restrictive in both the short- and long-run. The growth in electricity demand following income growth is expected to be more remarkable in the long-run than in the short-run.

• Proceedings of the KIEE Conference
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• 2002.11b
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• pp.372-374
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• 2002

The Optimal Power Flow(OPF) is the optimization model that has different constraints and the specified objective function, which is very useful tool for efficient system and market operation in the competitive electricity market. The existed OPF models focus on the minimization of generation fuel cost under informed demand values at each bus Recently, the studies of OPF model with demand function considering the response behavior of customers in the deregulated electricity market have been executed. This paper implements the OPF model using demand function with specified price elasticity, and provides the analysis of related results.

• Environmental and Resource Economics Review
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• v.31 no.3
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• pp.319-342
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• 2022

This study analyzed the effect of pay-as-you-throw bag prices on domestic waste through the natural experiment difference in difference with synthetic control method using cases of price cuts in some districts in Busan in 2019. In order to consider the endogenous problem when estimating demand and price elasticity, the price-invariant district was set as a synthetic control group and the price-cutting district was set as a treatment group. As a result of the analysis, the price elasticity of demand was 0.05~0.11, and the price of the pay-as-you-throw bag had little effect in sales. This seems to be because pay-as-you-throw bag is necessities and account for a very small proportion of household income. This suggests that a policy that can shift the demand curve will be more effective than a price policy to achieve the waste reduction goal because the demand curve is almost vertical.