• Title/Summary/Keyword: social cost

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Online Channel Strategies of Hybrid Firms and Social Cost

  • Cho, Su-Mi;Lee, Sang-Ho
    • Management Science and Financial Engineering
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    • v.13 no.1
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    • pp.55-72
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    • 2007
  • We consider the product differentiation model of online channel competition and examine the strategies of hybrid firms in terms of efficiency. After measuring the social cost of online business strategies, we show that (i) online channel of hybrid firm under blockaded entry may increase the social cost if the firms' delivery cost is sufficiently smaller than the consumer's transportation cost, and (ii) online competition under free entry may increase the social cost if the firms' delivery cost is sufficiently larger than the consumer's transportation cost. Finally, we discuss the strategic incentive of hybrid firms to reduce delivery cost and investigate the effect of the Internet maturity on the social cost.

Cost Function of Congestion-Prone Transportation Systems (혼잡현상을 갖는 교통체계의 비용함수)

  • Mun, Dong-Ju;Kim, Hong-Bae
    • Journal of Korean Society of Transportation
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    • v.25 no.6
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    • pp.209-230
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    • 2007
  • This paper analyzed the social cost function of a congestion-prone service system, which is developed from the social cost minimization problem. The analysis focused on the following two issues that have not been explicitly explored in the previous studies: the effect of the heterogeneity of value-of-travel-times among customers on the structure of cost functions; and the structure of the supplier cost function constituting the social cost function. The analysis gave a number of findings that could be summarized as follows. First, the social marginal cost for one unit increase in system output having a certain value-of-travel-time is the sum of the service time cost for that value-of-travel-time and the marginal congestion cost for the average value-of-service-time of all the system outputs. Second, the marginal congestion cost equals the marginal supplier cost of system output under the condition that supplier compensates the customers for the changed service time costs which is incurred by the marginal capacity increase necessary for economically facilitating an additional system output. Third, the compensated marginal cost is the multiple of the marginal capacity cost and the inverse of system utilization ratio, if the service time function is homogeneous of degree zero in its inputs.

The Effect of Housing Cost Burden on the Mental Health of Middle-aged and Older People with Disabilities: Focused on the Moderating Effect of Social Capital

  • Sae-bom Kim;Jun-su Kim
    • Journal of the Korea Society of Computer and Information
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    • v.29 no.8
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    • pp.147-155
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    • 2024
  • The purpose of this study is to analyze the relationship between housing cost burden and the mental health status of middle-aged and older adults with disabilities, and to examine whether this relationship is moderated by social capital. To achieve this goal, a final analysis was conducted on a sample of 938 individuals aged 45 and above with disabilities who participated in the 16th wave of the Korean Welfare Panel Study. Moderated multiple regression analysis was performed using Stata 17.0. The results of the study are as follows. First, an increase in housing cost burden was associated with a decrease in the mental health status of middle-aged and older adults with disabilities. Second, among the multidimensional elements of social capital, social networks were found to be a factor that positively influenced mental health status. The relationship between housing cost burden and mental health status was moderated by social networks, a key element of social capital. Based on these findings, this study confirms the value of social capital as a protective factor for improving the mental health status of middle-aged and older adults with disabilities who experience housing poverty due to housing cost burden, and suggests implications for social welfare strategies targeting the development of social capital.

Changes in the Economic Feasibility of a Floating Photovoltaics Project due to the Social Cost of Carbon (탄소의 사회적 비용에 따른 수상 태양광 사업의 경제성 변화)

  • Jaejune Lim;Jinsoo Kim
    • New & Renewable Energy
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    • v.20 no.1
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    • pp.26-37
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    • 2024
  • Renewable energy sources play a key role in achieving carbon neutrality and zero net emissions in the power generation sector. Various efforts have been made to support the deployment of renewable energy, particularly solar photovoltaic and wind power, including policies to internalize the external cost of carbon emissions. In this study, we conducted a financial analysis of a 800 MW floating photovoltaic system and compared it with ground solar power generation. Additionally, we conducted a cost-benefit analysis that included the social cost of carbon. The findings showed that the floating photovoltaic project can meet the profitability target through an appropriately designed internalization of the social cost of carbon.

Environmental Corporate Social Responsibility in a Polluting Duopoly and Endogenous Timing Game (오염배출기업의 환경에 대한 사회적 책임과 내생적 시간게임)

  • Lee, Sang-Ho;Park, Chul-Hi
    • Environmental and Resource Economics Review
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    • v.27 no.1
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    • pp.1-28
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    • 2018
  • This study investigates the strategic environmental corporate social responsibility (ECSR) of polluting duopoly when two firms have different production costs and compete with prices. We then examine an endogenous timing game in choosing ECSR and its effects on environmental damage and social welfare. The followings are the main findings: First, sequential choice of ECSR is strategic complements and it provides late adopter advantage irrespective of cost difference. Second, sequential choice of ECSR is the equilibrium of endogenous timing game. In particular, an efficient firm-leading ECSR is the payoff dominance equilibrium when cost difference is significant. Finally, environmental damage and social welfare depend on the social cost of pollution. In particular, an efficient firm-leading ECSR is socially desirable when social cost is high. However, an inefficient firm-leading ECSR increases environmental damage irrespective of social cost and it reduces social welfare when cost difference is significant.

Study on the Development of Social Evaluation Model for Aids to Navigation Accident (항로표지사고의 사회적비용 평가모델 개발에 관한 연구(I))

  • Moon, Beom-Sik;Gug, Seung-Gi;Lee, Young-Tae
    • Journal of Navigation and Port Research
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    • v.42 no.3
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    • pp.187-194
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    • 2018
  • Aids to Navigation (AtoN) is a marine traffic safety facility used to facilitate the safe and efficient movement of shipping and enhance the protection of the marine environment by the regulations or guidelines of The International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA). Our country is managing AtoN to provide consistent services for AtoN users, although an average of 141 AtoN accidents occur annually. An AtoN accident forces non-planned work on the managers to resort the function, and causes psychological anxiety for its users, ultimately resulting in economic losses. This study developed the Social Cost evaluation model of AtoN accidents. The model can be used to quantify the manager's economic activities related to the shutdown and recovery, as well as the cost associated with the inconvenience to AtoN users. The Social Cost evaluation model of AtoN accidents is proposed as the sum of the encounter cost, administration cost and risk cost.

Scenario Analysis of Low-Carbon Generation Mix Considering Social Costs (사회적 비용을 고려한 저탄소 전원구성의 시나리오 분석)

  • Park, Jong-Bae;Cho, Young-Tak;Roh, Jae Hyung
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.67 no.2
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    • pp.173-178
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    • 2018
  • This study organizes scenarios on the power supply and demand plans considering the uncertainties and the portion of distributed energy resources. In analysing the scenarios, it estimates total electricity supply cost in the social aspect, natural gas demand and air pollutants emission including carbon dioxide. Also the analysis is performed to estimate the marginal cost of carbon dioxide reduction for the fuel switching from coal to liquified natural gas. In result, the social cost could be decreased by replacing some portion of renewable energy by LNG-based combined heat and power and delaying the construction of large base-load generators such as coal and nuclear plants. The marginal carbon dioxide reduction cost by fuel switching is in plausible range for fuel switching to be an option for carbon dioxide emission reduction when the social cost is considered.

A Study on the Change of the Korean Liquor Industry and the Imposition of Liquor Tax by Changes in Tax system (주세 체계 개편으로 인한 주류 산업의 변화와 주세 부과 방안에 관한 연구)

  • Lim, Geon-Woo;Yang, Sung-Bum
    • Korean Journal of Organic Agriculture
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    • v.29 no.3
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    • pp.285-300
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    • 2021
  • On January 1, 2020, the liquor tax for beer and takju was reorganized from the ad valorem tax to the specific tax. The purpose of the reorganization of the liquor tax announced by the National Tax Service is to improve the quality of the liquor and to resolve unreasonable discrimination between domestic and imported liquor. However, it is necessary to determine whether the National Tax Service's standard for levying the liquor tax is appropriate for the purpose. In this study, the change in the liquor industry is estimated due to the reorganization of the liquor tax using Hicks net price elasticity. In addition, the specific tax for each of the liquors and the alcohol content derived from the social cost minimization model is compared. The main findings are as follows. First, when the liquor tax of beer and takju is converted to the specific tax, social costs increase, and social welfare decrease. Second, if all the liquors are converted to the specific tax, social costs decrease. Third, when comparing specific tax by each of the liquors and the alcohol content according to the social cost minimization model, The specific tax by alcohol content can be considered more appropriate in terms of social cost and the stakeholders in the liquor industry.

Analysis of Applicability in the Public Transportation System considering the Cost-volume Supply Curve of New Transit System Bi-Modal Tram (녹색 신교통 시스템 바이모달트램의 비용-수요 공급곡선을 고려한 도시 대중교통체계 적용 특성 분석)

  • Kim, Hong-Seok;Kim, Ryang-Gyun;Ham, Jae-Hyun;Jeon, Jae-Cheong;Yoon, Hee-Taek
    • Proceedings of the KSR Conference
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    • 2010.06a
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    • pp.2303-2308
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    • 2010
  • We studied the cost-volume supply characteristic of public transportation systems focused on Bi-modal Tram in the main cities to analyze the applicability and status for the new transit system Bi-modal Tram as public transportation system. The operation cost considering the characteristic of vehicle, facilities, operation and average cost for respective public transportation system and the time cost considering the travel and transfer time are defined to the social cost, and the cost-volume supply curve is based on this social cost. The cost-volume supply characteristic between public transportation modes in the city is determined on the basis of cost-volume supply curve. Through the comparison between cost-volume supply characteristic of main transportation systems, it is analyzed about the relation between public transportation systems in the city and the characteristic for proper service provision. The application of Bi-modal Tram in the city is concluded that it is effective to reduce the social cost on the existing public transportation system.

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Study on Development of Social Cost Estimating Model for Aids to Navigation Accident(II) (항로표지사고의 사회적비용 추정모델 개발에 관한 연구(II))

  • Moon, Beom-Sik;Kim, Tae-Goun
    • Journal of Navigation and Port Research
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    • v.43 no.3
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    • pp.166-171
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    • 2019
  • Aids to Navigation(AtoN) Accident can reduce the credibility of AtoN by adding extra works to the administrators, and cause burdens and inconveniences to the users during their navigation leading to social costs (or economic losses). Prior research on social cost estimation model to determine the Encounter cost, Administrative cost and Risk cost on the Aton model was done to estimate the economic losses due to AtoN Accident. However, this research could not provide adequate study results on risk cost estimates. Therefore, this study complements the estimation model presented in the previous study, and the estimated social cost of 249 AtoN Accidents that occurred during the last 10 years (2008-2017) in the Busan Regional Office of Oceans and Fisheries jurisdiction area. The risk cost was estimated using contingent valuation method since the AtoN is a non-market goods. As a result, the social cost of AtoN Accidents for the past 10 years was estimated to total 12.4 billion won including Encounter cost of 3.1 billion won (25.38%), Administrative cost of 1.7 billion won (13.62%), and Risk cost of 7.5 billion won (61.01%).