• Journal of Information Technology Services
• /
• v.17 no.2
• /
• pp.69-81
• /
• 2018

This study performed an economic analysis and tested the viability of a public computerization project to create a comprehensive information system for public e-procurement for small and medium-sized businesses (SMBs). The study found that the estimated costs of the project included 4.3 billion won to build the system and 710 million won per year to maintain the system once it is built. The project's estimated total benefits amounted to 6.66 billion won per year, including 5.871 billion won per year in increased convenience for SMBs that use the system, 406 million won per year in benefits for public institutions, and 383 million won per year in benefits for the institution "A" to adopt the system. We used the contingent valuation method (CVM) to estimate the benefits to SMBs, which would be the main participants of the project. The survey found that the SMBs were willing to pay an average fee of 170,136 won. we conducted an economic analysis by applying a 5.5% social discount rate over an analysis period of 10 years and found a benefit-cost ratio of 5.02 and a net present value of 40.201 billion won, which indicated a very high economic viability of the project. The results of this study can be an important reference when deciding whether to pursue computerization projects in the public sector.

• Journal of Environmental Policy
• /
• v.12 no.4
• /
• pp.71-92
• /
• 2013

Unlike general public investment projects, when it comes to environmental public investment projects, there is a gap between those who pay the costs, and those who receive the benefits. This is because of the long term nature of environmental investments, which entails that the majority of the costs are paid by the current generation, while the benefits are reaped by future generations. Because of this, when the social discount rate is set at a standard, singular rate, an issue of relative underestimation of the benefits reaped by future generations may occur during the analytic process. This paper begins with the recognition of this problem, and attempts to estimate a suitable social discount rate that can be applied to environmental investment projects. Taking into account recent economic situations, the social discount rate is currently being estimated at between 2.9 ~ 4.9%. Also, this paper used preliminary feasibility studies that took place so far, to analyze the standard pattern of benefit generation. This revealed that alterations in social discount rates can bring significant changes in economic feasibility test results. Simulation results showed that roughly 6% of B/C ratios could be increased by 1%p. resulting in a decrease in social discount rates. Also if we use hyperbolic discount rates, instead of using the current singular rate, there would be a meaningful increase in the benefits for the future generation.

• Current Photovoltaic Research
• /
• v.9 no.2
• /
• pp.59-73
• /
• 2021

The purpose of this study is to develop a business model that efficiently converts diesel power generation systems to renewable energy microgrids (MG) in large-scale islands. Most of the previous studies on the conversion of renewable energy MG in islands had limitations dealing with efficiency from the perspective of suppliers. However, the microgrid has the characteristic of getting benefits through the interaction between the consumer and the supplier. In addition, the efficient MG business model from the perspective of new institutional economics is a structure in which consumers and suppliers jointly participate. Therefore, this study assumed that the MG business model in which the supplier's MG and the consumer's community solar participated would benefit all participants, and verified the assumptions using domestic island data. In terms of supplier investment, the cost of power supply (LCOE) of assumed model was calculated to be 14.0% lower than that of the diesel model and 3.7% lower than that of the supplier-only MG model. From the perspective of consumer investment, electricity bills are expected to be reduced by more than 200,000 won per household per year through self-generation of solar power. Social benefits are expected to reduce external environmental costs. The CO₂ emissions of the assumed model were calculated to be 39.5% lower than the diesel model and 1.5% lower than the supplier-only MG model. Therefore, the MG business model with consumer participation proposed in this study is expected to be an efficient alternative to renewable energy MG conversion in domestic islands, and is meaningful as an energy plan that improves the benefits of local residents.

• Journal of Electrical Engineering and Technology
• /
• v.8 no.1
• /
• pp.40-45
• /
• 2013

It is known that Reliability Differentiated Pricing (RDP) can improve the efficiency and benefits of consumers and producers. This paper examines the long-run social welfare maximization problem of the utility and presents a long-term reliability differentiated prices for firm capacity, based on customer outage costs. Then the applicability of the proposed pricing scheme is verified with a case study.

• International conference on construction engineering and project management
• /
• 2013.01a
• /
• pp.28-35
• /
• 2013

The construction industry has introduced the Leadership in Energy and Environmental Design (LEED) rating system to promote objective evaluations of the sustainability of buildings. Three important values to consider when implementing sustainability are the associated environmental, social, and economic impacts. Recently, researchers have begun to investigate the real estate value of LEED certified buildings in terms of the rental cost, occupancy rate, cost per unit area, and resale value in order to better understand the economic benefits of the LEED rating system. However, the economic benefits also encompass economic effects such as the impact of LEED certified buildings on neighborhood real estate values surrounding the certified buildings. This research examines whether the enhanced real estate value of LEED certified buildings in New York City extends to surrounding commercial buildings, utilizing spatial analysis via a Geographic Information System (GIS) and the hedonic pricing method to derive meaningful economic relationships. The results provide practical insights into the economic effect of LEED certified buildings that will be of interest to city officials and planners, as well as the owners, developers, investors and other stakeholders of surrounding buildings.

• Journal of Korea Technology Innovation Society
• /
• v.7 no.3
• /
• pp.657-679
• /
• 2004

The purpose of this paper is to measure economic impact of marine environment conservation research development project. Benefit-Cost(B/C) analysis and Contingent Valuation Methods(CVM) are used to valuate the benefits from the research development projects. A period of three years for research development fund is considered as a part of the costs and adjusted to the net present value (NPV) of the 2002 ending period. The environmental charges for marine environment improvement are considered for the benefit measurement. The benefits are estimated by using monthly average willingness to pay, which is 2,289 Korean won. The contribution of the developing a management model for environmental pollution in the Gwangyang Bay is evaluated utilizing survey data and information. Based on the assessment by expert groups, the contribution of the model was 37.5％. The research results showed that B/C ratio is 20.61, NPV is 89,200 million Korean won, and social rate of return is 185.7％. When the level of contribution is over 1.83％ at the assessment of potential influence, it is recognized to be economically feasible. This research presents a quantitative framework for Research and Development projects for marine environment conservation, and it can be applied to decision making for the investment size of R&D projects.

• Journal of The Korean Society of Agricultural Engineers
• /
• v.65 no.4
• /
• pp.11-23
• /
• 2023

In Korea, open burning of agricultural residues is prevalent due to inadequate collection systems, which have caused environmental impacts such as GHGs and particulates. This illegal treatment of agricultural residues also results in economic loss, considering that agricultural residues can be utilized as resources such as pellets and energy sources. To understand the effect of avoiding open burning, this study evaluated the economic, environmental, and social effects of two alternative management options for agricultural residues: incineration and pelletizing. The study estimates the potential amount and dry weight by region for 18 items, taking various factors into account. Regarding the economic aspect, pelletizing facilities in all regions in Korea create economic benefits. This study shows that most regions have an environmental advantage by pelletizing residues. However, incineration creates more environmental benefits than pelletizing in metropolitan cities with relatively low density of residues. It is expected that the environmental, economic, and social findings of this study can be used to inform policies for bioenergy as the need for agricultural residue increases.

• Journal of the Korean Society of Industry Convergence
• /
• v.25 no.6_3
• /
• pp.1183-1190
• /
• 2022

Recently, the Ministry of Strategy and Finance announced a plan to reduce the proportion of economic evaluation in non-metropolitan areas and strengthen balanced development evaluation through the reorganization of the preliminary feasibility study system. In addition, the social value of the quality of life, such as job, environment, and safety, which may be affected by the implementation of transportation facility investment projects, was reflected as the main item of policy evaluation. In this study, the ripple effect of the project in terms of social value was reviewed for the Gangil-Chuncheon. The effect of highway opening was investigated by reviewing the feasibility report, post-evaluation report, and statistical indicators. Recently, the Gangil-Chuncheon highway is getting used by around 110,000 people per day. The number of tourists in Chuncheon rapidly has increased from 5 million a year to more than 11 million now. In addition, it was confirmed to produce effects such as population migration, net inflow and land price increase, improvement of living convenience, and expansion of emergency medical care. Although this ripple effect was influenced by various socio-economic factors as well as the opening of the highway, it is clear that it is difficult to occur without the opening of the highway. It is judged that the evaluation of indirect benefits and social values due to the opening of the highway can be quantified through continuous research and data construction. Post-evaluation of construction works, including project efficiency evaluation and ripple effect evaluation, is performed for construction works with a construction cost of more than 50 billion won. In the future, we will continuously improve the evaluation system in order to evaluate the indirect benefits and social values of public investment projects.

• The Journal of Industrial Distribution & Business
• /
• v.13 no.10
• /
• pp.23-30
• /
• 2022

Purpose: The advantages of corporate social responsibility (CSR) include stronger recognition and reputation, which lead to a company's good public image, increased customer loyalty, operational cost saving, and employee retention. The purpose of the present research is to take a close look at the association between CSR and organization's value. Research design, data and methodology: The authors tried to obtain the high-quality textual data from mostly peer-reviewed journals using a PRISMA ((Preferred Reporting Items for Systematic Reviews and Meta-Analyses). The authors was to figure out adequate solutions from limited range of the current literature (only peer-reviewed research) regarding CSR and corporate value. Results: Our investigation indicates that CSR is essential to all businesses as it ensures they keep in touch with society, retaining top personnel, and achieving top financial success. Companies and organizations can engage in four corporate social responsibility initiatives to increase value, including environmental projects, charitable work, honest labor practices, and volunteer activity. Conclusions: An organizations should be involved in the community and consider how its actions affect the environment and society. Small or large businesses are expected to lead in developing a progressive CSR program that benefits people and the environment and continuously changes depending on the social and economic environment.

• Journal of the Korea Convergence Society
• /
• v.12 no.12
• /
• pp.331-338
• /
• 2021

This study used data from the 10rd and 15th year of the Korean Welfare Panel to evaluate the effects of the Energy Voucher Program(EVP) on the consumption and expenditure of EVP users' households. The study consisted of program group using EVP and control group not using. Chi-square and t-test were used for the characteristic differences among the groups, and the difference of consumption expenditure was identified by multiple regression analysis. As a result, EVP had a statistically significant effect on the health care costs of EVP users' households, resulting in an increase in health care costs(𝛽=3.06). However, there was no statistically significant effect on the total cost of living, basic cost, education cost, and recreation/entertainment cost. Therefore, in order to increase the effectiveness of the EVP system, it is required to improve the EVP system by expanding the level of benefits and easing the qualification standards for the eligibility for benefits.