• Environmental and Resource Economics Review
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• v.19 no.4
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• pp.829-852
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• 2010

The investment in Clean Development Mechanism (CDM) projects is increasing rapidly as the first implementation period began in 2008. This paper examines on the optimal level of primary Certified Emission Reduction (CER) price, subsidiary original projects investment cost and expected issues CER per year, using UNFCCC CDM Project Design Document (PDD) data. Real option model is developed to incorporate a case where the investment is irreversible and underlying asset price is uncertainty. This study employs Real option approach which allow the optimal level regard as economic feasibility of CER price has analyzed with NPV (Net Present Value) and Black-Scholes call option(Real option) value. Finally, CER supply curve and price elasticity of supply are estimated.

• Environmental and Resource Economics Review
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• v.27 no.1
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• pp.29-66
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• 2018

This study constructs an energy-extended KLEM DB of 35 Korean industries, and estimates the elasticities of substitution under various nesting structures of production technologies. Unlike most existing studies that employed only three inputs, K, L, and E, we applied a dual approach where non-energy intermediate input M is also incorporated as a production input. Our dual approach which extended that of van der Werf (2008)'s 3-input model successfully identified and estimated the multi-nested production functions. We provide the estimates of the elasticities of substitution among 4 different energy sources as well. Our estimation results would be used for energy-environment model building for Korea.

• 한국신재생에너지학회:학술대회논문집
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• 2011.05a
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• pp.76.1-76.1
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• 2011

With the growing penetration of distributed generation including from renewable sources, smart grid power system is needed to address the reliability problem. One important feature of smart grid is demand response. In order to design a demand response program, it is indispensable to understand how consumer reacts upon the change of electricity price. In this paper, we construct an econometrics model to estimate the hourly price elasticity of demand. This panel model utilizes the hourly load data obtained from KEPCO for the period from year 2005 to 2009. The hourly price elasticity of demand is found to be statistically significant for all the sample under investigation. The samples used for this analysis is from the past historical data under the price structure of three different time zones for each season. The result of the analysis of this time of use pricing structure would allow the policy maker design an appropriate incentive program. This study is important in the sense that it provides a basic research information for designing future demand response programs.

• Journal of the Korean Home Economics Association
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• v.45 no.6
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• pp.49-59
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• 2007

The purposes of this study were to determine the price elasticities of foodcourt-styled university foodservice, and to identify the attributes that affect these price elasticities. Questionnaires were distributed to 700 students at the K University in Masan, from September 21-27, 2006. 478 questionnaires were ultimately included in the final analysis(response rate: 68.3%). For statistical analysis, SPSS(12.0) was used to conduct the descriptive analysis, t-test, and ANOVA. The results of this study were as follows. The average meal price for in-campus foodservice was \ 2,196 and the average meal price for an off-campus restaurant was \3,044. The university students recognized that the proper price for in-campus foodservice and an off-campus restaurant were, respectively, \2,127 and \ 2,884. The price elasticities for foodcourt-styled university foodservice were 4.20(Kko-Bul-Kko-Bul), 3.83(Il-Poom-Hyang), and 4.10(Ne-Mo-Baek_Ban). The factors that affected price elasticity included the frequency of visiting foodservice, foodservice satisfaction, price satisfaction, and customer's responses to increased meal prices. The recommended price strategy for foodcourt-styled university foodservice was to lower meal price, which would attract more students and increase the sales volume. Simultaneously, foodservice managers should attempt to improve and increase customer satisfaction and the customer's perceived value for meal price. Overall, price elasticity may prove helpful in predicting the customer's behaviors on price changes, and may provide useful basic data for foodservice managers when establishing price strategy.

• Environmental and Resource Economics Review
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• v.19 no.3
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• pp.633-658
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• 2010

In this paper, we estimate the Translog cost function in Korean manufacturing, using capital (K), labor (L), material (M), electricity (E), fuel (F) data over the period from 1970 to 2005. Especially, this paper investigates the impact of imposing concavity in the estimation of a Translog cost function. Although the value of log-likelihood is somewhat reduced in a concavity imposed function rather than a function which is not, a concavity imposed function satisfies regularity conditions (monotonicity, positivity, concavity) at all data points. We also calculate price elasticities using a concavity imposed Translog cost function. Electricity complements capital so electricity demand increases as capital demand increases. Meanwhile, electricity substitutes labor, fuel, and material. These results show that Korean manufacturing experienced a structural change of increase in electricity demand.

• Proceedings of the KIEE Conference
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• 2009.07a
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• pp.575_576
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• 2009

최근 전력산업의 구조적인 측면에서는 수직적 형태의 분리 및 경쟁 도입, 그리고 민영화를 통한 효율 증진 등 전력산업 개편이 전세계적으로 이루어지고 있다. 전력산업의 개편 과정에서 전력공급자(ESP)는 불완전한 시장으로 인한 재정적인 위험에 직면한다. ESP가 재정적인 위험에서 근본적으로 벗어나기 위해서는 합리적인 전기 소매 가격의 책정이 필요하다. 본 논문에서는 현재 적용되고 있는 고정 소매 가격제에 대한 문제점을 제시하고 이를 극복하기 위해서 전기 공급 도매 가격의 변동성을 예측함으로써 헤징을 통한 새로운 요금제의 도입의 필요성을 제안하는 것이 본 논문의 목적이다. 본 논문에서 소개될 새로운 요금제인 Critical Peak Pricing(CPP)에서 전기 공급 도매 가격의 변동성의 예측은 CPP 요금을 적용하는데 중요한 역할을 담당하는 지표로 활용된다. CPP 요금을 적용함으로써 ESP의 재정적인 위험을 최소화하고 수요 탄력성이 반영되어 전기 소비자들과의 관계 향상 또한 유도될 수 있다.[4],[6]

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.1
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• pp.72-80
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• 2014

This study is to estimate a demand of coffee in Korea. And based on assumed data, this study is to investigate price elasticity, income elasticity and cross-price elasticity of coffee demand. The data used in this study is the household income and expenditure survey micro data (2003~2012) provided by the National Statistical Office. And LA/AIDS model and SUR method were utilized in order to forecast coffee demand. As a result, price elasticity and income elasticity are found to be correspond with economic theory as they were assumed to -0.259, 0.455 respectively. Meanwhile, it indicated characteristic of essential good by showing negative (-) income odds ratio estimate. When it comes to cross-price elasticity of coffee and cigarette, it was found to be a complementary relation as its cross-price elasticity was assumed to -0.121. Besides, it was found that male consume more coffee than female, while people in their age of 50s consumes mostly. In conclusion, this study suggests necessity of reconsidering coffee as important goods when Consumer Price Stabilization Policy is determined, as coffee shows characteristic of essential goods which is inelastic.

• Journal of Korean Society of Transportation
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• v.23 no.8 s.86
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• pp.67-75
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• 2005

This study analyzed the relationships between expenditures on transportation and those on communications, using consumer expenditure data from the U.S. for the 19 years 1984-2002. We first identified 12 categories of goods for transportation and communications, and then applied the linear approximate Almost Ideal Demand System(LA/AIDS) method for estimating consumer demand functions based on aggregating the categories to five (public transportation, personal vehicle capital, personal vehicle operation, electronic communications media, and print communications media) due to the small sample size. Expenditure and price elasticities were also calculated at mean values of expenditure shares. The results indicate that transportation and communications categories have both substitutive(e.g. public transportation and electronic communications media) and complementary(e.g. private vehicle capital and electronic communications media) relationships. Additionally, expenditures in the transportation categories are generally more income-elastic than those in communications.

• Journal of Energy Engineering
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• v.24 no.2
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• pp.167-173
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• 2015

This paper attempts to estimate the electricity demand function in Korea with quarterly data of average temperature, GDP and electricity price over the period 2005-2013. We apply lagged dependent variable model and ordinary least square method as a robust approach to estimating the parameters of the electricity demand function. The results show that short-run price and income elasticities of the electricity demand are estimated to be -0.569 and 0.631, respectively. They are statistically significant at the 1% level. Moreover, long-run income and price elasticities are estimated to be 1.589 and -1.433, respectively Both of results reveal that the demand for electricity is price- and income-elastic in the long-run. The relationship between electricity consumption and temperature is supported by many of references as a U-shaped relationship, and the base temperature of electricity demand is about $15.2^{\circ}C$. It is shown that power of explanation and goodness-of-fit statistics are improved in the use of the lagged dependent variable model rather than conventional model.

• 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.